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Jeff Vinik set to close hedge fund months after returning to money management


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Jeff Vinik set to close hedge fund months after returning to money management

Jeff Vinik plans to shut down his stock-picking hedge fund less than a year after returning to the industry, The Wall Street Journal reported, citing a letter to investors and an interview with Vinik.

Vinik was a fund manager at Fidelity Investments before leaving in 1996 to launch his own hedge fund, Vinik Asset Management LP. The fund was shuttered in 2013, but Vinik announced he was reopening the fund in January.

In the letter to investors, Vinik said he found it more difficult than he expected to raise money from investors. The Wall Street Journal reported that the fund raised $465 million as of March and it currently manages about $550 million. Vinik had hoped to raise $3 billion, according to the Journal.

The hedge fund was up 4.8% from its March 1 launch through September, beating the average equity hedge fund, according to the report. But the S&P 500 index gained more than 8% over that time.

Hedge fund investors will be redeemed out of the fund on Nov. 15, according to the letter.

Other high-profile hedge fund managers have chosen to convert their funds into family offices in recent months. Ascend Capital LLC founder Malcolm Fairbairn in November 2018 wrote to clients that industry headwinds and a difficult market environment led him to convert the fund to a family office. David Tepper in May said he plans to convert Appaloosa LP to a family office.