WSJ: Atticus to Close Two Big Funds
Timothy Barakett, the founder of hedge-fund firm Atticus Capital, is handing $3 billion back to his investors and closing down a flagship fund, along with a smaller vehicle.
Atticus will continue to operate, and will manage the $1.2 billion Atticus European Fund.
Atticus was one of the highest flying hedge-fund firms over the last decade, surging from a $6 million grubstake in 1996 to close to about $20 billion under management in late 2007.
In many ways Atticus was emblematic of a new breed of aggressive hedge funds, publicly pressuring some companies to make changes. Atticus did less hedging than more traditional hedge funds, and scored huge returns as the markets climbed.
But like many of its brethren, Atticus hit hard times in the past year. The flagship Atticus Global fund lost 25%, in 2008 and is down 6% in 2009, well off the pace of other funds. Since its inception, Atticus Global is up 19% annually, after fees, compared with a gain of 3.9% for the Standard & Poor’s 500, Mr. Barakett said in a letter to investors.
In the letter to investors, Mr. Barakett cited personal reasons for his decision. Firm officials said that it was not a reaction to investors pulling their money.
“After 15 years of being singularly focused on building and managing Atticus, I believe it is time to reassess my future,” Mr. Barakett said in his letter.
