Tuesday, 21 October 2014
Last updated 2 hours ago
Aug 23 2012 | 11:01am ET
A SAC Capital Advisors veteran is shuttering his hedge fund, telling clients that current investment opportunities are foreclosed by its mandate.
Matt Grossman on Tuesday wrote to investors in his Plural Investments, saying that he would return their money by the end of next month. He said that he would spend more time with his family, but also noted that "I would like to have a significantly more flexible investment mandate than the one we have pursued since the launch of the funds."
Grossman wrote that he believes "we are close to a tipping point with respect to the effectiveness of government intervention in the economy as well as investor preference for fixed-income over equities." Grossman said that the best opportunities require a higher market exposure and volatility than the long/short equity Plural fund allows.
Certainly, performance has not been a problem for the $440 million fund. It returned in excess of 8% in both 2009 and 2010, and was essentially flat in 2011, a year that saw most hedge funds lose. It is up 4.5% this year.
Plural's chief trading officer, Brandon Levin, is to join JANA Partners as head of trading and syndicate, Reuters reports.
Grossman was chief investment officer at SAC's CR Intrinsic unit before founding Plural in New York in 2008. He worked at Credit Suisse and Tiger Management before moving to CR Intrinsic in 2001.
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 ...