Horseman Calls It Quits As Flagship Loses 23%

Nov 13 2009 | 12:52pm ET

John Horseman, one of the most well-regarded hedge fund managers in London, is throwing in the towel amidst big losses this year.

Horseman told investors Wednesday that he was giving up management of his two hedge funds “for personal reasons and also because of how I perceive the investment environment.” His flagship Horseman Global Fund, which will also lose assistant manager Mark Driver, will be taken over by Russell Clark and John Paul-Burke. Horseman’s Emerging Market Opportunities fund will be liquidated.

Horseman said he had planned to stick around for another few years before retiring, but his funds’ struggles seem to have changed his mind. The $3.6 billion Global Fund—which enjoyed huge returns last year while most hedge funds suffered double-digit losses—is down about 23% this year, when the average hedge fund is up almost 20%.

“There will be those who might think that a poor year is unduly influencing my decision, and it is probably true that if the fund had had a better year, I might have been tempted to continue for a while longer,” Horseman wrote. “But with a time frame of three to four years at most, I feel now is the most appropriate time to make way for others.”

Horseman and Driver will remain with the firm, although not in a day-to-day management role. Horseman will keep his controlling stake in the firm and will remain on its board of directors.

Clark takes over as manager of the Global Fund on Jan. 1.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.