Tuesday, 30 August 2016
Last updated 18 hours ago
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.