Shumway Closure Irks Investors

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."


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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.