No, It's Not You, It's Me

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So, what do you do when you manage to blow out your clients to the tune of 88% in a single year? Do you:
A. Confess your sins to your sons who promptly turn you into the FBI?
B. Plan a little spot of bother during your flight to Florida?
C. Close the shutters and open a brand spanking new fund with a brand spanking new name?
Of course, it's a trick question. The answer is D. "Any of the above," now that Michael Zimmerman has met that definition.

Michael Zimmerman, who runs New York- based Prentice Capital Management LP, plans to start a hedge fund focused on retail and consumer stocks after his main fund halted redemptions and lost as much as 88 percent last year, according to marketing documents and investors.
The new Prentice Capital Long/Short Equity Fund would buy and sell only publicly traded stocks, according to the marketing documents. The firm's flagship fund, Prentice Capital Partners, trades public stocks and corporate debt and has about a third of its assets in closely held companies.
"How can you raise money when you've destroyed capital to that degree?" said Brad Balter, whose Boston-based Balter Capital Management LLC invests in hedge funds. Balter doesn't invest with Zimmerman, 38, who traded retail and consumer stocks at Steven Cohen's SAC Capital Advisors LP for five years before founding Prentice in 2005.

Who says there are no second acts in American lives? (I know, I know, but he didn't know about hedge funds, that was the point, sheesh).

Zimmerman's Prentice Plans New Fund After Losing 88% in 2008
[Bloomberg]

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