Wednesday, 1 April 2015
Last updated 19 min ago
Apr 8 2013 | 11:29am ET
Last month, Jeffrey Vinik said he could see his firm managing as much as $10 billion. Instead, he finds his Vinik Asset Management running about $6.5 billion after a wave of redemptions.
Investors have asked to withdraw about $1.5 billion from the firm, about 18% of the $8 billion it currently manages. The redemptions come after a period of underperformance for Vinik, which returned just 0.3% between July and February, while the average long/short hedge fund rose more than 9%, The Wall Street Journal reports.
The withdrawals also coincide with investor fears that Vinik himself is stepping away from day-to-day management of the firm. Vinik recently moved from Boston to Tampa, Fla., to be closer to the hockey team, the Tampa Bay Lightning, he bought three years ago. He also last year took on the role of chief investment officer and hired a new investment team, and consolidated his firms' funds, each previously run by its own manager.
Some of Vinik's difficulties, however, are due to investment decisions he made, notably increasing exposure to equities at the end of last year. His new investment team also made a money-losing investment in gold.
At a JPMorgan Chase event last month, Vinik said he was responsible for the losses and that he would reduce the leverage the firm employed. He also said he plans to seek to raise money from new investors; according to the Journal, he has recently made himself more available to clients, to assure them that he remains focused on running the hedge fund.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…