JAT Capital Management—a $1.7 billion long/short equity hedge fund—is returning investor capital and exiting the business, according to a client letter obtained by Bloomberg and the Wall Street Journal.
The Greenwich, Connecticut-based fund will continue to manage founder John Thaler’s personal assets as a family office, the 39-year-old reportedly told investors.
“It is the right moment to take a break, spend time with my young family, and determine which path to pursue next.” —John Thaler, JAT CapitalClients can expect their investments back by the end of June, the letter said, with staff strategically unwinding the portfolio in the meantime.
When reached by CIO, a spokesperson for the firm confirmed the closing but declined to comment further.
Thaler founded JAT in 2007 after building a track record at Shumway Capital, a Tiger Management descendant that has also since shut down.
JAT’s eight-year run was marked by major return volatility and tracking error. The firm—which, like Thaler, specialized in technology, media, and telecommunications stocks—lost just 6% in 2008, its first year. In 2013, it ranked among the industry’s best performers with a gain of 30.6%.
But the fund’s smaller number of bad years were equally as dramatic, including losses of 19.2% in 2012 and 11% last year.
Beyond the family office, Thaler told investors he has no immediate plans to embark on further investment ventures.
“As I approach my 20th anniversary working in the financial services industry, with the last eight spent building and managing JAT Capital,” he wrote, “it is the right moment to take a break, spend time with my young family, and determine which path to pursue next.”
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