Tiger Cub Axial To Close

Nov 6 2013 | 2:13pm ET

The hedge fund industry is full of Tiger cubs that have survived and thrived, but Axial Capital Management is not among them.

The hedge fund, founded by a pair of Bear Stearns bankers in 2002 and seeded by Tiger Management founder Julian Robertson, is closing its doors. Axial, a short-biased fund, has lost money in three out of the past four years, and is down 15.4% this year, CNBC reports.

It is not clear when the once-$1.8 billion firm will liquidate and return money to investors. Axial managed only $605 million at the end of September, down nearly $300 million from the beginning of the year.

Axial, founded by Marc Anderson and Eliav Assouline, had posted positive returns every year from 2003 through 2008. But it, like other short-biased funds, has taken a beating in recent years as stocks rally amidst the tepid global economic recovery.

Earlier this year, the firm sought to staunch its asset losses with the launch of two new funds, which combined managed $53 million at the end of September.

"They are terrific guys and I wish them the very best in the future," Robertson told CNBC.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of