edited title: SAC Alum To Close $440 Million Hedge Fund

Quote:

http://www.finalternatives.com/node/2138....
Aug 23 2012

A SAC Capital Advisors veteran is shuttering his hedge fund, telling clients that current investment opportunities are foreclosed by its mandate.

Matt Grossman on Tuesday wrote to investors in his Plural Investments, saying that he would return their money by the end of next month. He said that he would spend more time with his family, but also noted that "I would like to have a significantly more flexible investment mandate than the one we have pursued since the launch of the funds."

Grossman wrote that he believes "we are close to a tipping point with respect to the effectiveness of government intervention in the economy as well as investor preference for fixed-income over equities." Grossman said that the best opportunities require a higher market exposure and volatility than the long/short equity Plural fund allows.

Certainly, performance has not been a problem for the $440 million fund. It returned in excess of 8% in both 2009 and 2010, and was essentially flat in 2011, a year that saw most hedge funds lose. It is up 4.5% this year....

every ******* claims they want to sepdn more time with their family when the fact is they coudnnt perform.. period.