NEW YORK, June 2 (Reuters) - Two well-known Boston hedge fund managers, James Pallotta and George Noble, plan to close their largest funds, the Wall Street Journal reported on Tuesday in its online edition.
According to the report, Pallotta's and Noble's decision to shutter their biggest funds may be an indication that veteran investors remain skittish about hedge fund investments after sizable losses last year, and could portend more fund closings.
Pallotta, manager of the $800 million Raptor fund, will return funds to outside clients, the newspaper reported, citing people familiar with the matter.
About $700 million of Raptor's assets will be returned from next month. The balance of the funds belong to Pallotta and other insiders, according to the report. It said Pallotta plans to restart the fund later in the year.
Noble, who has about $550 million under management in a pair of funds named Gyrfalcon, will refund clients this month, the newspaper reported.
Citing an investor letter on June 2, the report said that Noble described 2009 as 'the most professionally disappointing and personally frustrating of my entire career.' It said Noble plans to raise outside money again later in the year.
Investors over the last year have punished the roughly $1.3 trillion hedge fund industry, after an average 19 percent loss last year, by pulling out a $152 billion in the last quarter of 2008.
(Reporting by Lilla Zuill) Keywords: NOBLEPALLOTTA/FUNDS (lilla.zuill@thomsonreuters.com;+1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
According to the report, Pallotta's and Noble's decision to shutter their biggest funds may be an indication that veteran investors remain skittish about hedge fund investments after sizable losses last year, and could portend more fund closings.
Pallotta, manager of the $800 million Raptor fund, will return funds to outside clients, the newspaper reported, citing people familiar with the matter.
About $700 million of Raptor's assets will be returned from next month. The balance of the funds belong to Pallotta and other insiders, according to the report. It said Pallotta plans to restart the fund later in the year.
Noble, who has about $550 million under management in a pair of funds named Gyrfalcon, will refund clients this month, the newspaper reported.
Citing an investor letter on June 2, the report said that Noble described 2009 as 'the most professionally disappointing and personally frustrating of my entire career.' It said Noble plans to raise outside money again later in the year.
Investors over the last year have punished the roughly $1.3 trillion hedge fund industry, after an average 19 percent loss last year, by pulling out a $152 billion in the last quarter of 2008.
(Reporting by Lilla Zuill) Keywords: NOBLEPALLOTTA/FUNDS (lilla.zuill@thomsonreuters.com;+1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.