Tilson Closing Kase Capital Management

October 2, 2017 James Heinsman Company Spotlight

Kase Capital Management, run by well-known fund manager Whitney Tilson, is closing its doors as returns don’t meet expectations.

At its best the fund managed $180 million, a comparatively smaller fund considering the $3 trillion invested in this space. Yet the fund has been watched over the years as Tilson appeared on several TV shows and even made some highly noticed market predictions.

“It was a hard decision, but the right one,” Tilson said in an email Thursday explaining his decision to close shop.

“I expect that most of my work will continue to be in the investment field, as I still love it and am confident that I can put my energy and 18 years of experience to good use,” he said.

Tilson added that he will most likely stick to managing his own assets.
He also said that he takes no comfort from the fact that many other managers have decided to shut down their funds in recent days, finding it increasing difficult to beat the market.

This year, broadly speaking, hedge funds went up by 5.5% through August. Total funds invested in this market equal about $3.1 trillion. But investors shrank the money in hedge funds by about $70 billion last year, while money going in came to only about $1.2 billion.
In addition, the total number of funds available has been growing smaller, with exactly 9,691 now, compared to 10,142 in 2013. That is a loss of 4.4% of funds over three years.
In his letter to his clients announcing his decision, Tilson said he regretted his funds did not perform better.

“If I were managing only my own money, the fund’s recent results wouldn’t bother me quite so much. But investing and running a money management business are two very different things, and reporting sustained underperformance to you was making me miserable,” he said

Kase Capital, Whitney Tilson,

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