Pirate Capital has been hit with redemption notices from at least three fund of funds, with more expected, according to a DealBreaker source. The redemptions are said to be prompted by poor performance in recent months.
The fund has lost its marketing department as well as their analysts, according to the source. Among those we're told have left the fund is Zachary George, who featured so prominently in last year’s New York Magazine story (and is pictured in the item directly below this one.
“It's a bloodbath,” the source says.
The best (unconfirmed detail) we've heard is that just last week Pirate Capital had a boatcruise that left from Chelsea Piers. At the end of it, we're told they handed out baseball caps emblazoned with the motto "SURRENDER THE BOOTY." Emphasis now decidedly on Surrender.
Update: Bloomberg confirms: "Pirate Capital LLC said five of its ten investment professionals resigned and it will close its funds to new investments, according to a letter to investors."
Update II: Reuters has more details.
Thomas Hudson, founder of the $1.7 billion fund, said in the letter that two analysts, Zachary George and David Lorber, have resigned from the firm. On Wednesday, fixed income portfolio manager Carl Klein resigned, said Hudson. Later on Wednesday, Hudson said he asked for the resignations of two other analysts, according to the letter.
"Effective Oct. 1, we are closing the funds to new investors," said Hudson in the letter. "I have no intention of liquidating positions or closing the firm. On the contrary, I fully intend to refocus, streamline and navigate the portfolio back to the positive performance I began the firm with."