Monday, 20 October 2014
Last updated 2 days ago
Feb 11 2011 | 8:15am ET
The impending closure of Shumway Capital has more than a few investors ticked off at founder Chris Shumway.
The firm's abrupt decision, announced last week, to return money to outside investors came after Shumway spent months trying to reassure investors that the firm's future was safe after he stepped down as its lead manager. Following Shumway's announcement in November that he would hand the reins of the $8 billion firm to his deputy, investors sought to redeem billions. But Shumway himself reached out to a number of major investors, including funds of funds, promising to delay the handoff and to reassure them about the future.
Those investors were then blindsided by last week's news, which has them looking "stupid, like they don't know what's going on," one pension consultant told Hedge Fund Alert.
"I fully understand this complication was brought on by the changes that I chose to make, and as such I feel responsible to correct this mismatch of investment style and investor needs," Shumway wrote. "The right decision for all of us is to return investor capital."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...