Investors withdraw $2.5 billion after Horseman Capital’s Star Manager Steps Down

March 21st, 2010
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Hedge fund Horseman Capital’s investors withdrew $2.5 billion in early January after John Horseman stepped down from his position as fund manager. Although Mr. Horseman will maintain the title of CEO, withdrawals amounted to over half the firm’s assets, which dropped from $4.6 billion last October from $1.3 billion this February. According to a recent Reuters article, the majority of the assets were pulled from Horseman’s flagship Global fund.

The withdrawals demonstrate the hedge fund industry’s key-man risk in which firms rely on one or two star managers to retain clients. Horseman’s spokesman stated that redemptions have now significantly declined and are forecasted to be very small this April.
For Detailed Investor Profiles on these Investors, click below:
Horseman Capital Management
Related People: Christopher Harrison; John Horseman; John-Paul Burke; Mark Driver; Russell Clark
Related Entities: Horseman Emerging Markets Fund*; Horseman European Select Fund; Horseman Global Fund; Horseman Value Fund
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News

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