Vinik says it has been much harder to raise money for his fledgling hedge fund than he had anticipatedGETTY IMAGES
Lightning Owner JEFF VINIK said that he is "closing his stock-picking hedge fund less than eight months after he started it, the latest sign of challenges facing the hedge-fund industry," according to Juliet Chung of the WALL STREET JOURNAL. In January, Vinik said that he was "getting back in the industry after effectively shuttering his hedge fund two prior times," most recently in '13. He said that he "planned to raise" $3B by March 1. In an investor letter dated yesterday announcing his decision, Vinik wrote, "It has been much harder to raise money over the last several months than I anticipated." Vinik had raised $465M as of March 1. It now manages about $550M. Vinik also wrote that while his Tampa hedge fund Vinik Asset Management was up 4.8% from its March 1 launch through September, the returns "hadn't been enough to spark more flows into the fund." Vinik said that he "needed to manage significantly more money for the 'economics to make sense' for himself and his business partners" (WALL STREET JOURNAL, 10/24).
IN THE FOLD: Vinik said that the fund will "close Nov. 15, and its 25 to 50 investors will get their money back." He added, "There was no visibility of more money coming in the door, I'm frankly disappointed to say. We never got close, and there was no sign of us getting close" (TAMPA BAY TIMES, 10/24). Vinik this morning said closing down the fund had "nothing to do with performance, actually." Vinik said, "It was quite pleased with my performance over the last several months given the challenges of the market." He added, "One thing I think I've always been good at in the financial markets is selling when a position is going against me" ("Squawk Box," CNBC, 10/24).
