Conatus Capital To Close As Stemerman Considers Race For CT Governor

Sep 19 2017 | 10:32pm ET

Hedge fund manager David Stemerman is reportedly shuttering his $1.6 billion Conatus Capital Management ahead of exploring a potential run for the governorship of Connecticut in November 2018.

The decision to wind down the Greenwich-based fund, as well as Stemerman’s thoughts about running for office, were contained in an investor letter seen by multiple media outlets including Bloomberg and Reuters. “I do not claim to have all of the answers, but as an outsider with a fresh perspective, I believe that I can bring a different approach,” Stemerman, a Republican, said in the letter. 

Conatus will return 95% percent of investor capital by the end of December, the manager continued, with the balance coming after final audits are completed.

Founded in 2008, the long/short equity fund was the largest launch of the year at $2.3 billion. Assets ultimately grew to around $3 billion by early 2014 before starting to slide. The firm’s flagship fund is up more than 18% for the year to date, according to Bloomberg, and has gained an average of around 5.4% annually since inception. 

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