After Six Years Tide Point Shutting Doors

September 11, 2018 James Heinsman Hedge Fund News

The six-year-old hedge fund Tide Point Capital Management is closing down due to the personal desire of the majority owner. It is just one more causality in a long line of closed funds in this hurting $3 trillion industry.

Based in Old Greenwich, Connecticut, Christopher Winham founded the fund in 2012. He served as the fund’s majority owner and chief investment officer. In recent weeks the fund controlled $800 million in assets.

Winham told his investors last week that his decision to close the fund was purely personal and due to his desire to spend more time with his family. He spent almost 25 years on Wall Street, working at Goldman Sachs and Steven A. Cohen’s hedge fund SAC Capital. He also worked at Diamondback Capital, founded by SAC graduates. But Windham told his investors that the industry has changed a lot since those earlier days.

The past few years have proved challenging for small to medium sized hedge fund to raise fresh money and to stay afloat. Many investors are disillusioned with the poor results caused by weak returns and high management fees. A lot of money has moved to less expensive index funds as the stock market continued its climb over recent years.

The numbers speak for themselves: In the first eight months of 2018 hedge funds had an average global return of 1.89% while the S&P 500 Index rose by almost 8% during the same time. The first quarter of 2018 saw 145 hedge funds shuttering, although 158 new funds opened their doors to investors.

Christopher Winham, SAC, Steven A. Cohen, Tide Point Capital Management,

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