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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

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.