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Drake Shutters Fund, Retains Modicum Of Integrity

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Drake Management said in a letter yesterday that it will wind down Global Opportunities, its $2.5 billion flagship fund. After returning 41 percent in 2006, GO lost 24 percent in 2007, and another ten percent by mid-March of 2008. Interestingly, after the losing of the money thing started, Drake took the rather unorthodox approach of asking investors what they wanted to do (keep going or pull the plug), instead of unilaterally deciding to suspend withdrawals, not showing remorse, saying 'Why did we lose your money? 'Cause fuck you, that's why. Deal with it and quit your bitching,' as other firms are wont to do. And that sort of seems fair? Democratic? The right thing to do? Drake said the fund will be wound down over the next year (after failing to secure enough support to keep the thing going), and a follow-on fund will be launched for those who want to give it another go.
Drake to Shut Its Largest Hedge Fund, Plans New Fund This Year [Bloomberg]


Zoe Cruz To Shutter Hedge Fund

Don't cry for the Cruz-Missile, though. Apparently she's already strategizing her next move. Cruz is said to have been struggling to raise anything beyond the initial $200 million she obtained from Voras Capital investors, the source said. The source said the decision to return investor money was made recently and all clients would get their money "promptly." Cruz's hedge fund, which began raising money and recruiting employees in 2009 formally opened in 2010, was down 8 percent last year, the sources added...The source said Cruz is fielding job inquiries in the finance industry, but has not made any decisions. Zoe Cruz's Voras Capital To Close [Reuters/Katya Wachtel]