Despite what the Sohn conference founder, Doug Hirsch, says, his hedge fund is closing down because of poor returns, not due to his busy scheduled mixed with his wine tasting classes.
“I am no longer able to continue making the commitment and sacrifices required to run outside capital,” Hirsch said in the Dec. 21 letter. “Despite negligible redemption requests and increasing market opportunities that are the result of a challenging year in event-driven investing, I cannot in good faith start next year with the dedication required to manage your capital.”
I am almost certain had Seneca risen by 20% this year, Hirsch would be praising his genius this pagan holiday season, luring investors into his $500 million bucket shop.
Seneca is down 6% for the year.
According to Hedge Fund Research Inc., more than 670 hedge funds closed in the first 9 months of 2015. Wait until the data comes crawling out from the corner offices after the New Year. It’s gonna be a doozy.
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Precisely…these data points are bullish…not bearish. IMHO.