Star inventory picker and longtime cash supervisor Jeffrey Vinik defined Thursday that he is shuttering his hedge fund as a result of would-be buye
Star inventory picker and longtime cash supervisor Jeffrey Vinik defined Thursday that he is shuttering his hedge fund as a result of would-be buyers balked at his funding technique, a reluctance that finally capped how a lot his relaunched agency was capable of increase.
“Lengthy/quick fairness efficiency has not been good the final 5 to 10 years. So asset allocators are very leery of placing any cash to work in that specific class,” Vinik informed CNBC’s “Squawk Box.”
“What we heard again frequently was: ‘We do not like this asset class, we’re not placing cash with lengthy/quick asset managers, we’re not satisfied that your model works,'” he added.
Vinik introduced in a letter to investors on Wednesday that, lower than one 12 months after relaunching his hedge fund, he is closing the funds on Nov. 15. The supervisor had hoped to boost between $2 billion and $three billion, however finally raised solely about one-sixth of his objective.
In his letter, the fund supervisor defined to stakeholders that “it has been a lot more durable to boost cash over the past a number of months than I anticipated.” Vinik stated on Thursday that the lackluster fundraising was seemingly associated to the underperformance of hedge funds versus the broader inventory market lately.
Vinik’s announcement earlier this week got here simply months after he informed CNBC in January that he was relaunching his firm. Since then,…