Felix Salmon

Atticus pinched

By Felix Salmon
August 11, 2009

Atticus founder Timothy Barakett cited “solely personal reasons” in his letter saying that he was closing down his flagship fund and embarking on the philanthropic part of his life. By sheerest coincidence, the letter comes in the wake of his fund losing 31% of its value, which means that it would have to rise by 45% just to reach its high-water mark and start generating performance fees again for Mr Barakett.

A disinterested observer might conclude that Barakett was quitting on the grounds that he had no interest in working hard as a hedge fund investor if he wasn’t going to be paid lots of money to do so. But since Barakett says that his reasons are “solely personal”, it can’t possibly be that.

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A cynical disinterested observer (like The Masked Financier) might surmise that something fishy is going on.
If one reviews the annals of hedge fund history it is highly unusual for a well known manager in charge of a large fund to execute such an about turn and shut down.
Hopefully there is nothing amiss, but time will tell.


Well, should Mr. Barakett pop up in thre years time, having realized that day trading his own account isn’t half as glamorous, I’m sure the HF community’s collectively short memory will once again, give him money with no high watermark…
… and we laugh at goldfish?

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