Saturday, 31 January 2015
Last updated 1 day ago
Dec 3 2012 | 12:38pm ET
Add another hedge fund to this year's pile of industry casualties.
Kleinheinz Capital Partners is the latest hedge fund to throw in the towel, with firm founder John Kleinheinz telling investors that he does "not enjoy running the fund as much as I used to."
"Managing a fund like ours requires me to do a lot of things that make me a less-effective investor," he explained.
Kleinheinz said the Fort Worth, Texas-based firm is about 65% "through the process" of winding down, Bloomberg News reports. Most investor capital will be returned by the end of the year, with some held back pending an audit. In addition, about 2% of Kleinheinz's $4.3 billion portfolio is in illiquid assets and will take longer to wind down.
An employee of the hedge fund, Mark Stupfel, is already planning a successor firm. The new hedge fund will debut in the second quarter of next year and will feature both Kleinheinz's financial backing, some of Kleinheinz's staff and Kleinheinz's current offices. Kleinheinz himself will not have a management role.
Kleinheinz set up his eponymous firm in 1996.
More than 400 hedge funds closed their doors in the first half, a 14% increase from a year earlier, Hedge Fund Research reports. This year has seen the closures of Avesta Capital Advisors, Bell Point Capital Management, Boyer Allan Investment Management, Brencourt Advisors, Cadogan Management, Camargue Capital Management, Centaurus Capital, Edoma Capital, Grant Capital Partners, John W. Henry & Co., Kingsbrook Capital, Lasair Capital, Libra Advisors, Millbrook Capital Management, Novaterra Capital, Octavian Advisors, OMG Capital, Orvent Asset Management, Pivotal Investments, Ridley Park Capital, Sequence Asset Management, Sharp Peak Capital Management, Thaddeus Capital Management, Tell Investments, Tiger Asia Management, Voras Capital Management and Weintraub Capital Management.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…