Shumway To Return Investor Capital

Feb 4 2011 | 11:59am ET

There will be no Shumway Capital Partners without Chris Shumway at the helm, at least not for the firm's outside clients.

The $8 billion hedge fund's founder said it would return all client money by the end of next month. The move follows his decision in November to step away from day-to-day money management, which in turn triggered some $3 billion in redemption requests.

Chris ShumwayChris Shumway"The right decision for all of us is to return investor capital," Shumway wrote.

Shumway, who always planned to remain as CEO of the firm and chairman of its management committee, said his eponymous hedge fund would continue to manage his money and that of its employees.

In November, Shumway said he would hand the title—and duties—of chief investment officer over to Tom Wilcox. Shumway has about 95 employees, about 25 of them investment professionals. It is unclear what sort of job cuts he'll have to impose, but he said he expects some of the investment pros will seek to launch their own hedge funds.

Also unclear is the fate of the 8% stake in the firm held by Goldman Sachs' Petershill private equity fund, which invests in hedge fund managers.

Shumway founded the Greenwich, Conn.-based firm in 2002 after working for Tiger Management. The fund has enjoyed annualized returns of 17% before fees during that time.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.