Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Hedge fund White Elm to shut down, posts double digit returns -letter

Stock MarketsDec 06, 2019 08:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Hedge fund White Elm to shut down, posts double digit returns -letter

By Svea Herbst-Bayliss

BOSTON (Reuters) - Hedge fund White Elm Capital is returning money to outside clients at the end of the year, ending a 12-year run of picking stocks for pensions, endowments and wealthy families, its founder, Matthew Iorio, wrote in a letter on Friday.

Iorio, whose fund is having one of its best years ever with a nearly 30% gain after fees, said now was the right time to end. He called the decision "very difficult" but said he was "happy to be returning capital when we are performing at the top of our game."

Reuters saw a copy of the letter. A spokesman for the firm declined to comment beyond the letter.

White Elm is the latest in a growing number of hedge funds to shut down as raising and retaining capital and running a hedge fund is becoming ever more difficult.

Last month Louis Bacon, one of the industry's best known managers, said he would stop investing outside money in his Moore Capital Management after 30 years in the business.

White Elm's outside investors will get most of their money back by the end of January, 2020, the letter said, adding that all current clients have earned money with White Elm.

The firm, which traces its roots to Tiger Management, one of the industry's most successful funds ever, was launched in 2007, managed more than $1 billion in assets at its peak and has seen returns go up and down. At the end of 2018, the firm oversaw $328 million in assets, according to a regulatory filing.

Returns have been strong recently with gains averaging 15% a year as bets on financial and business services companies and technology firms paid off.

White Elm's most recent regulatory filing shows that the firm owned stakes in TransDigm Group (N:TDG), Visa (N:V), Mastercard (N:MA) and Autodesk (O:ADSK) at the end of September.

This year, the fund has gained 28.73% through the end of November beating the average hedge fund's 8.6% return, according to Hedge Fund Research data.

Iorio wrote that he wanted to deliver long-term returns that beat the broader market and "we have achieved what we set out to do."

Before opening his own firm, Iorio, 49, worked at Lone Pine Capital, a hedge fund founded by Stephen Mandel who got his start at Julian Robertson's Tiger Management. White Elm is often called a Tiger Grand Cub.

Hedge fund White Elm to shut down, posts double digit returns -letter
 

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 (1)
Kaveh Sun
Kaveh Sun Dec 08, 2019 3:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
328mil fund is tiny in this industry. No wonder he shuts it down
 
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