Wow. We go out for a couple of hours and come back to yet another hedge fund with major issues. Half of Pirate Capital's staff jumped ship and the fund is now closed to new investors. Tom Hudson, the firm's founder says that he's not liquidating positions or shutting down the firm.
Pirate Capital LLC said five of its ten investment professionals resigned and it will close its funds to new investments, according to a letter to investors.
Pirate, which oversees $1.7 billion, didn't say why the staffers were leaving the firm after a 30-day transition period.
Thomas Hudson, founder of the Norwalk, Connecticut-based firm, declined to comment by e-mail when contacted by Bloomberg News. He's built a reputation as an activist investor by taking stakes in companies and pressuring them for changes to boost their stock prices.
Pirate Capital LLC, an activist hedge fund manager that recently faced regulatory scrutiny, told investors Thursday that it is losing five investment professionals and is closing the fund to new investors, according to a letter obtained by Reuters.
Thomas Hudson, founder of the $1.7 billion fund, said in the letter that two analysts, Zachary George and David Lorber, have resigned from the firm. On Wednesday, fixed income portfolio manager Carl Klein resigned, said Hudson. Later on Wednesday, Hudson said he asked for the resignations of two other analysts, according to the letter.
"Effective Oct. 1, we are closing the funds to new investors," said Hudson in the letter. "I have no intention of liquidating positions or closing the firm. On the contrary, I fully intend to refocus, streamline and navigate the portfolio back to the positive performance I began the firm with."
Pirate Capital Says Half of its Investment Staff Has Resigned - Bloomberg
Comments