Karsch Capital To Close

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."


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...