Horseman Investors Flee After Founder Steps Down

Mar 10 2010 | 1:26pm ET

In December, Horseman Capital lost its most high-profile fund manager, founder John Horseman. In January, it lost most of its assets.

Investors pulled $2.5 billion from the London-based firm following Horseman’s announcement that he would step down from day-to-day management of two of the firm’s funds. Combined with investment losses—Horseman’s flagship Global Fund lost 24.7% last year—the firm’s assets fell to US$1.3 billion at the of last month from US$4.6 billion at the end of October.

Most of the redemptions came from the Global fund, which saw its assets drop by more than 80% to $535 million.

“We had redemptions on the back of the announcement made last year,” a spokesman for the firm told Reuters. “Investors were allowed to redeem on Jan. 4, and that’s when the bulk of the redemptions took place.”

But withdrawals have since slowed “massively,” the spokesman said, and redemptions will probably be “quite small” next month. The fund’s new manager, Russell Clark, is off to a good start to the year, with a 0.55% return in the year’s first two months.

Horseman remains the firm’s CEO and its largest equity holder.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

Securities and Exchange Commission Chair Mary Jo White will step down as chair of the nation’s Wall Street overseer in January, setting the stage for a potential conservative shift in the regulator’s leadership under the incoming Donald Trump administration.