Wednesday, 31 August 2016
Last updated 59 min ago
Aug 29 2013 | 12:37pm ET
Michael Karsch is closing his eponymous hedge fund and will return all client capital by the beginning of next year.
Karsch said that he would return 95% of Karsch Capital Management's $1.8 billion in assets by the end of September and the rest by January, pending a final audit.
"I feel as I approach 20 years as an investment manager, it is time for me to take a step back, reflect on my experiences and begin to think about the next chapter of my career," the 45-year-old wrote the clients yesterday.
Karsch founded his firm 13 years ago, after a stint at Soros Fund Management. He also formerly worked at Chieftain Capital Management and Wasserstein Perella & Co.
Karsch Capital's flagship is up 6.1% this year. In the letter, Karsch said that the fund has beaten the Standard & Poor's 500 Index by 100 basis points over its life. A long-only fund that debuted in 2006 is up 16% this year and has returned 94% since inception.
Karsch did not say what he planned to do next, but that he is "very excited about the opportunities that lie ahead."