JAT Capital Returning Outside Capital, Will Morph Into Family Office

May 12 2015 | 10:47am ET

John Thaler’s JAT Capital is turning into a family office and will return investor capital, according to The Wall Street Journal citing an investor letter. 

JAT lost more than 11% in 2014, although a representative for the fund was quoted in the Journal report as saying the recent performance was not the reason for the fund’s closing.  Client capital will be returned by June 30. 

JAT focused on long/short equity plays primarily in telecom, media and technology, and first came to wider attention when it held losses in 2008 to only 6.4%, compared to the 19% drubbing suffered by its average hedge fund peer that year. It has been volatile since then, posting double-digit losses in 2012 only to snap back with a 30.5% gain in 2013, according to Bloomberg data.

The fund's returns have reportedly been positive so far this year.

New York-based JAT was founded in 2007 by Thaler with backing from Chris Shumway, a former protégé of Julian Robertson. The fund had equity holdings worth more than $3.5 billion at the end of the first quarter, according to regulatory filings. 

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