Shumway Capital Partners founder Chris Shumway said he expected new businesses to rise from the ashes of his shuttered $8 billion fund, and he was right.
Hedge Fund Alert reports today that five portfolio managers will leave Shumway Capital to start their own funds. They are: Neil Shah, who specializes in healthcare stocks; Ashwin Vasan, a macro manager; Chris Lange, a consumer-stock specialist; Jeff Nykun, who specializes business services companies; and Shumway Capital CIO Tom Wilcox.
Wilcox, who is credited with the call to short financial stocks that made a killing for the fund in 2008, had been Shumway’s heir apparent. But after the announcement that he would be taking over the reins from the founder triggered billions in redemptions, Shumway was forced into damage control mode, promising major investors he’d postpone the handover for three months. Then, abruptly, on February 4th, he announced he would return all investor capital.
Shumway launched Shumway Capital in 2002, after a successful career at Julian Robertson’s Tiger Management. Starting with five employees and $70 million in capital, Shumway grew the firm to $8 billion and 95 employees. Over its eight-year run, the fund provided average annual returns of 17%.