Viking CIO Sundheim To Depart; $8B To Be Returned To Investors

Jun 12 2017 | 5:20pm ET

Andreas Halvorsen’s hedge fund manager Viking Global Investors will return upwards of $8 billion this summer amid news its chief investment officer is leaving the company.

Dan Sundheim, who was CIO of the $32 billion manager since 2014 and with the firm since 2002, is leaving to pursue other interests, according to a Bloomberg article citing an investor letter sent by the company. He will leave by the end of June and his role filled by portfolio managers Ben Jacobs and Ning Jin.

Capital will be returned from its flagship Viking Global Equities fund and the Viking Long fund, the article continued. Viking Global Equities booked a 4% lost in 2015, its largest since inception, before gaining 7.1% through April 2017. However, its portfolio is technology heavy, according to first quarter securities filings, with positions in Alphabet, Facebook and Microsoft – all of whom have been pummeled in the tech sector correction that began late last week. 

No timeline for the repayment of the $8 billion was given, although investors must make their redemption wishes known to the firm by July 13 in order to avoid penalties and be included in repayments planned for August, the article continued. Viking has reportedly already sold off the necessary portion of its holdings to meet the requests. 

Sundheim reportedly wanted a more flexible investment mandate than his role could provide, Bloomberg said, citing the letter. His departure is said to be amicable and Sundheim has been helping with the transition. 

Halvorsen founded Greenwich-based Viking in 1999 following a stint at Julian Robertson’s Tiger Management as director of equities and member of the management committee. The company is one of the largest remaining “tiger cubs” in the industry.

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