According to Atticus Capital’s Tim Barakett’s letter to investors regarding the closing of the funds that he manages (Atticus Global, Ltd. and Atticus Global, LP):
My decision is solely a personal one. After fifteen years of being singularly focused on building and managing Atticus, I believe it is time to reassess my future. I intend to spend more time with my family, pursue my philanthropic interests and establish a family office to manage my own capital and charitable foundation.
Here’s our translation: I had a crappy 2008 and what with that pesky high water mark where I’d have to work for free, I’m packing it in so that I can spend more time with my family, yadda, yadda.
Will we be surprised when we hear about the details of his inevitable next fund? Hell no. Because we all know that underwater money managers don’t just fade away. They lay low for awhile, then come back looking for investors for their next fund ventures after the dust settles and memories of losses fade. And the fee machine can start fresh.
According to the Wall Street Journal:
….Mr. Barakett’s fortunes flagged amid the recent financial panics. His flagship fund, Atticus Global, fell 27% in 2008. Several bets went sour in 2008, particularly in financial companies. Atticus Global’s high-profile stake in Deutsche Börse AG lost about half of its value, or some $500 million, from April 2008 to May 2009.
Mr. Barakett proved too skeptical of markets at times this year, and bets went the wrong way at other times. Atticus Global was heavily invested in cash in the first quarter before buying more stocks in the second quarter. The fund is down 6% in 2009, even as other hedge funds rose an average of about 12%.
Here’s the 13F Chart study for Atticus from it’s just filed (yesterday) 13F as of 6/30/09. Virtually all of the stocks were bought after 3/31/09 when the fund reported only five equities in their portfolio (WYE, V, NOK, MA, COST; The NOK was sold during the quarter.) Click to enlarge.
Tags: 13F Chart Study, Atticus Capital, Hedge funds, high water marks, liquidations, Tim Barakett
