William Ackman’s bad year is taking a big toll. The activist hedge-fund manager has seen his firm’s assets under management decline by $1.2 billion from a high point earlier this year, largely due to investment declines, according to people familiar with its operations…At the end of September, Pershing Square’s total assets under management stood at $11.2 billion, according to a person familiar with the matter. That is a $1.2 billion decline from the $12.4 billion that Pershing Square reported it had under management as of March 1 in a filing with the Securities and Exchange Commission…People with knowledge of the firm said the decline resulted almost completely from weak investment performance, and net redemptions by investors had amounted to less than $150 million so far in 2013. [WSJ]
Elliott performance. Read more »
The UK firm’s decision to cut 1/3 of its staff is said to be part of a “strategic” plan to stop losing money. Read more »
As many of you know, the last number of months have not been the best of times for hedge fund manager Steve Cohen. In addition to taking it up the tailpipe from several federal agencies, some of which he’s written $600+ million checks to, others whose fearless leader eats raw meat for breakfast and hopes to one day feast on Cohen tartare, the SAC Capital founder has seen friendships tested and found where loyalties lie. And it hasn’t been pretty.
Employees, despite being told their jobs are safe, have been holding exploratory interviews with other funds in hotel rooms that rent by the hour. The guy who previously said he’d be there through “the bombs going off” left Cohen in the trenches, alone, taking grenades. Clients have requested their money back on en masse; as of Friday night, virtually all outside investors were expected to have filed redemptions requests if they had not done so already.
Except for one. Read more »
Billionaire hedge fund manager Steven A. Cohen may see the last of his outside investors ask for their money back by midnight on Friday…The departure of outside capital gave rise to speculation that SAC might turn itself into a family office, consider making layoffs or scale down the size of its operations. The firm has told employees this will not be the case. SAC President Tom Conheeney told employees in a recent email that the firm will have as much to invest at the end of this year as it did at the end of 2009. [Reuters, earlier]