Breaking News
0

Hedge fund Latimer Light says it is shutting down

Stock MarketsDec 21, 2018 04:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Hedge fund Latimer Light says it is shutting down

By Svea Herbst-Bayliss

BOSTON (Reuters) - Hedge fund Latimer Light Capital, which specialized in picking stocks, is closing its doors, becoming the latest casualty in an industry pummeled by the recent stock market sell-off.

New York-based Latimer Light told investors it plans to shut down in a letter it emailed on Friday, according to people familiar with the matter. A spokesperson for the firm declined to comment.

The firm was founded three years ago by Scott Phillips, who spent nearly a decade working for Stephen Mandel's Lone Pine Capital, one of the industry's most respected hedge funds.

Now Phillips joins a growing list of managers in the $3 trillion industry to call it quits as tumbling markets are prompting ever more hedge fund clients to ask for their money back. In the last months Highfields Capital and Tourbillon Capital announced plans to shut down.

Latimer Light had been operating for three years and at the end of last year, the firm had roughly $555 million in capital, according to a regulatory filing.

It invested primarily in stocks of high-growth companies or companies with solid businesses that were under-managed, the regulatory filing said.

At the end of the third quarter it owned computer software and services company PTC Inc., and video game holding company Take-Two Interactive Software Inc. among other stocks, according to another regulatory filing.

This year has been especially tough for hedge funds. The stock market sell-off in the fourth quarter cost many a lot of money and prompted clients to run for the exits.

The average fund lost 2.1 percent in the first 11 months of the year, according to data from Morgan Stanley (NYSE:MS). For December, the numbers suggest even more pain, with data showing that U.S. funds specializing in stock trading lost 5.5 percent this month.

Not only were hedge funds unable to keep pace with rising markets in recent years but now that stocks are tumbling, fueled by fears about corporate profits and interest rate movements, they failed to protect capital on the downside, industry investors said.

Criterion Management and Frontlight Capital also said recently that they are shutting down. More funds shut down than opened up this year, according to data from Eurekahedge.

Investors said fund managers faced with poor returns and redemptions are now deciding more often to shut down immediately instead of trying to raise cash for redemptions and then trying to raise new money to keep going.

Hedge fund Latimer Light says it is shutting down
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
aji koo
aji koo Dec 23, 2018 11:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
get out of stocks while u can... hedge with Gold Silver... last chance..
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email