* Matt Grossman was formerly with SAC Capital, Tiger
* Firm up 4.5 pct through July
By Katya Wachtel
NEW YORK, Aug 22 Plural Investments, a New
York-based hedge fund founded by the former chief investment
officer at SAC Capital's CR Intrinsic division, will shutter his
firm by the end of September, according to people familiar with
Plural was founded in 2008 by Matt Grossman, and focused on
going long and short equities.
Grossman told investors about the decision to return their
capital on Tuesday, noting in a letter that he sees investment
opportunities with a strategy that has higher market exposure
and return volatility and more concentrated positions than
Plural's current investment mandate.
"Going forward, I believe we are close to a tipping point
with respect to the effectiveness of government intervention in
the economy as well as investor preference for fixed income over
equities," Grossman wrote in the letter, a copy of which was
reviewed by Reuters.
"These trends have been building, and while the outcome is
uncertain, I have concluded that I would like to have a
significantly more flexible investment mandate than the one we
have pursued since the launch of the funds."
The fund closure was reported earlier by AR.
Plural returned more than 8 percent in 2009 and 2010, but
gained only 0.1 percent in 2011, a year when equity hedge funds
on average lost 8 percent, according to Hedge Fund Research.
Through July this year, the $440 million fund was up 4.5
percent, according to a person familiar with the numbers. Hedge
funds rose 2.88 percent on average through July 31, according to
hedge fund tracking firm HFR, while the broader stock market was
up 7.41 percent over the same period.
Grossman also cited wanting to spend more time with his
family as a reason for returning investor money. He and his wife
had three sons since the hedge fund was founded in 2008.
The New York-based manager joined Steven Cohen's $14 billion
hedge fund in 2001. Prior to that, he worked for Credit Suisse
and was an energy analyst at Julian Robertson's
Tiger Management. He joined Tiger in 1994.
Brandon Levin, who is Plural's Chief Trading Officer, will
soon take on the role at Barry Rosenstein's Jana Partners,
according to an investor letter reviewed by Reuters.
Levin will be Head of Trading and Syndicate at Jana