Clarium Eyes Private Equity, Tech In Rebuilding Bid

Aug 15 2011 | 2:46pm ET

Clarium Capital Management's Peter Thiel is going back to what he knows: technology.

The PayPal co-founder and early Facebook Inc. and LinkedIn Corp. investor plans to steer more of what's left of Clarium's assets into private technology companies. The San Francisco-based hedge fund disclosed its private equity turn in a regulatory filing last month.

"It was important to give our investors advance notice that we were going to potentially branch out into a new asset class," Clarium managing director James O'Neill told Bloomberg News. "Peter has a long and successful track record as a technology investor."

His track record as a global macro hedge fund manager is somewhat shorter and a good deal less successful. Clarium's assets under management have fallen more than 90% since the middle of 2008, when it ran more than $7.2 billion. But the hedge fund has suffered three straight losing years, in which it has lost some two-thirds of its assets. Last year, Clarium fell 23% and moved the firm back to California from New York.

In its filing, Clarium said that private equity is an "attractive investment opportunity."


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