Sunday, 1 March 2015
Last updated 2 days ago
Nov 10 2010 | 10:27am ET
The tumultuous ride of Camulos Capital appears to be over. The hedge fund, spun off five years ago from Soros Fund Management, is liquidating its flagship just months after beating back an investor petition to force it to do just that.
In a letter to investors on Oct. 29, founder and CEO Richard Brennan told investors they had begun selling off the liquid positions of the Camulos Master Fund, calling that task a complicated one, AR magazine reports.
Camulos managed a peak of $2.65 billion at the beginning of 2008, the beginning of its endgame. The firm's hedge funds, like most of their peers, lost double digits that year. The losses led the firm to impose redemption restrictions and offer a significant fee cut to investors who agreed to lock up their money for one year. The firm eventually held an auction, run by Credit Suisse, allowing investors to sell their stakes in the hedge fund.
Earlier this year, Camulos was involved in a nasty court battle with founder William Seibold, who left the firm in May 2008 and founded his own hedge fund, Noroton Capital Management, that July. Seibold claimed that Brennan had forced him out of the firm and withheld millions in bonuses and investments Seibold redeemed from the Camulos fund; the hedge fund countered that Seibold did little to earn his keep at the firm.
In March, Camulos beat back an attempt by an aggrieved investor to force the liquidation of its offshore fund. Austrian private bank Kathrein & Co. filed a winding-up petition against the fund in the Cayman Islands after Camulos refused to fill its redemption requests.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…