Rising Hedge Fund Star Collapses Into Frigid Hedge Fund Black Dwarf

Pagoda Asset Management has caught fire, but not in a good way.

Four years ago, a trio of Highbridge Capital Management hotshots got together and founded a telecom, media, technology and consumer hedge fund that quickly garnered $100 million. The year after that, Institutional Investor named one of them, CEO Adam Bernstein, a “Hedge Fund Rising Star,” who crowed that he planned to make Pagoda Asset Management an “institutional-quality hedge fund that would generate superior, risk-adjusted returns for investors.” Any guesses where this is going?


Returns since then have been modest, climbing 1.4 percent in 2016 and 3.3 percent last year. The firm is up 1.1 percent this year…

And next year, there will be no returns at all.

Hedge fund Pagoda Asset Management is shutting down at the end of the month…. Pagoda notified investors of its decision to shut down by letter on Thursday.

Pagoda joins Hutchin Hill Capital and Magnolia Road Capital among recently-deceased hedge funds. Meanwhile, something called Whale Rock Capital Management is unstoppable. Do pagodas or magnolias or “Hutchin Hill” put you in mind of gravitas, seriousness and authority? Do they sound as weighty or immovable as Whale Rock? Dear reader, they do not, and now they are dead.

Hedge fund Pagoda Asset Management shutting after four years –source [Reuters]