SAC Vet Karp Posts Big Q3 Gain

Jan 2 2014 | 12:32pm ET

As SAC Capital Advisors fades into its family-office future, one of the firm's former traders is staking a claim to its share of the legendary hedge fund's legacy.

Jason Karp's Tourbillon Capital soared 15% in the third quarter, according to ValueWalk. That's not far off SAC's return for the full year, of about 20%.

Karp launched the $350 million fund in January after a stint as co-chief investment officer of Carlson Capital. Karp was previously a trader and research director at SAC's CR Intrinsic Investors.

Karp's success in the third quarter was due primarily to his short bet against retailer J.C. Penney Co. Penney's shares dropped 47% in the third quarter, which saw its largest investor, Pershing Square Capital Management, dump its entire stake at a $500 million loss. Pershing Square chief William Ackman also resigned from Penney's board following a dispute with its chairman and interim CEO.

In a letter to investors, Tourbillon wrote that Ackman's exit was not due to a bout of frustration but to his fears that Penney's could fall further—an analysis Karp shares.

Tourbillon did suffer some losses on shorts in the third quarter, notably those on food staples names. But the firm said it was sticking with the bets, believing that the stocks are overvalued.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.