SAC Vets Shutter Hedge Fund After Bad Sept. Bet

Nov 5 2010 | 12:03pm ET

While most hedge funds have been riding the equity-market rally this year to returns not seen since the financial crisis, that rally has cost one hedge fund firm its life.

Timescape Global Capital Management has liquidated its portfolio and will close its doors. The firm, founded four years ago by a pair of SAC Capital Advisors veterans, went short in September while the market went long. Timescape told investors that it liquidated what’s left of its portfolio last month, The New York Times reports.

“You may recall that we were up 6% going into September,” co-founders Peter Corey and Nadir Khan wrote. “But we put on a short position that cost us dearly in the face of an unprecedented September rally,” the markets’ best September since the Great Depression.

“The portfolio was liquidated during the first three days of October and we have been in cash ever since.”

Timescape, which was based in New York and Las Vegas, said it will return the money as quickly as possible to investors. The firm has just $50 million left, down from $298 million at its peak in mid-2008.

The firm has suffered ever since Khan moved to New York from Pakistan after investors demanded a presence in the city. But Timescape’s business model depended on training relatively inexpensive analysts based in Karachi, and without Khan’s presence in that city, the firm’s performance suffered, according to the Times.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note