Whitney Closes Brokerage, To Launch Hedge Fund

Oct 10 2013 | 8:59am ET

Star analyst Meredith Whitney is switching sides.

Whitney, who came to fame in 2007 when she predicted trouble for Citigroup, has closed her brokerage and is planning a hedge fund. Whitney's Kenbelle Capital registered in New York in April and is based in Bermuda.

Kenbelle is a long/short fund, with Whitney serving as chief investment officer and managing principal, according to regulatory filings.

The move has been some time in coming: Whitney was interviewing potential fund executives earlier this year. And Meredith Whitney Advisory Group has lost money every year since its debut in 2009 and had lost some prominent customers, among them Elliott Management, Paulson & Co. and Balyasny Asset Management. All told, more than half of the firm's clients jumped ship, forcing it to slash staff. It's last investment staffer other than Whitney, Angela Cantu, recently left the firm for the Blackstone Group.

MWAG deregistered with the Financial Industry Regulatory Authority on Aug. 28 and hasn’t published its weekly research report since Sept. 19.

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