August 22, 2012 / 6:27 PM / 5 years ago

Plural Investments hedge fund founded by SAC alum to shutter

* Matt Grossman was formerly with SAC Capital, Tiger Management

* Firm up 4.5 pct through July

By Katya Wachtel

NEW YORK, Aug 22 (Reuters) - 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 the decision.

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 Partners.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below