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

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.