Emrose’s Botti To Liquidate Hedge Fund

Sep 23 2010 | 1:24pm ET

A crisis of confidence has ended one hedge fund manager’s dozen-year run.

John Botti told investors earlier this month that he would close his Emrose Capital, which he launched in January of last year after a decade at hedge fund Botti Brown, now Spring Point Capital. Botti explained that the $402 million firm’s recent losses have caused him to question his strategy, Hedge Fund Alert reports.

“Knowing that I could structure portfolios that would break even and most likely produce gains in declining markets has been something that I could always depend upon,” he wrote in a letter dated Sept. 9. “Our recent losses in the midst of a declining market have cast doubt around this long-standing assumption.”

Botti is not giving up on that strategy entirely, even after he finishes liquidating it in November. Instead, he’ll continue to use it to manage his own money.

Nor is Botti entirely giving up on the hedge fund industry, despite his claim that he won’t launch a third. He’ll continue to manage Mt. Tam Capital, a fund of hedge funds he launched with several other Bay Area hedge fund managers. In addition, he plans to seed Jason Williams, who currently works with Botti at Emrose and plans to launch a hedge fund of his own.

Emrose’s Patrick Tenney and Kim Best will move over to Mt. Tam.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of