(Reuters) - Whitney Tilson is closing his hedge
fund Kase Capital, and will return capital to investors, he said in a
letter to clients.
Tilson cited “high prices and complacency that currently prevail in the market” as main reasons for shutting down his fund.
“Historically,
I have invested in high-quality, safe stocks at good prices as well as
lower-quality ones at distressed prices,” Tilson wrote to clients on
Sunday.
“... However, my favorite safe stocks
(like Berkshire Hathaway and Mondelez) don’t feel cheap, and my favorite
cheap stocks (like Hertz and Spirit Airlines) don’t feel safe. Hence,
my decision to shut down.”
Kase Capital follows
a spate of other notable funds that have gone out of business this
year, including Eric Mindich's Eton Park Capital Management, and John
Burbank's Passport Capital, which recently announced plans to shut its
long-short equity fund. reut.rs/2fuEDoI
No comments:
Post a Comment