U.K.-based Polar Capital has pulled the plug on its technology hedge fund, citing poor performance. Last year, the Technology Absolute Return fund fell by approximately 27%, and is currently valued at around US$30 million.
According to the firm, the fund has experienced “a period of disappointing performance both relative and absolute,” and at its present value a significant proportion of its assets are allocated to just running it.
“In addition, the fund's principal investor, who owns approximately 60% of the participating shares in the fund, has recently made it known that it wishes to exit its position. As a result of these events and on the advice of the manager that the Fund’s position is unlikely to improve within the next 12 months, the directors have concluded that the fund is no longer viable and should be wound up and closed in an orderly fashion.”
As the end of November 2007, Polar Capital manages over $3.6 billion in long only and long/short strategies.