Monday, 25 July 2016
Last updated 13 min ago
Dec 9 2008 | 1:58am ET
Seattle-based hedge fund Fleckenstein Capital is closing its short-only portfolio, calling the shorting business “not very much fun.”
On his Daily Rap blog, founder William Fleckenstein said he will shut down the strategy and exit the hedge fund business altogether. He told readers he plans to launch a new fund next year, but that it “won’t be a hedge fund,” and that it will “hopefully be available to everyone.”
“I now longer want to run a short-only hedge fund, as it is very stressful, nerve-wracking and generally not very much fund,” Fleckenstein wrote in a Friday post. He said his wife was “especially happy about the potential change.”
Fleckenstein was one of the loudest voices against the short-selling restrictions and bans imposed in the U.S. and around the world amidst the market turmoil. He started the short-only fund in 1996. This year, short funds have been among the best-performing hedge funds, with returns of roughly 30%.