When he abruptly announced that Shumway Capital Partners was closing, founder Chris Shumway wrote that he expected new businesses to spawn from his $7 billion behemoth (which grew from just $70 million AUM 8 years ago).
And today, we find out in Hedge Fund Alert that five portfolio managers will leave Shumway to start their own funds: Neil Shah, a healthcare-stock specialist; Ashwin Vasan, who focused on macro investments; Chris Lange, a consumer-stock specialist; Jeff Nykun, who focused on business-services companies; and the best well-known manager, Tom Wilcox, who is now the firm’s chief investment officer.
Wilcox earned Shumway big returns when he made a call to short financial stocks in 2008, and Shumway made him a partner in the firm.
That’s just one reason why Shumway wrote that Wilcox is the: “single most profitable individual in our firm’s history and has been critical to our success.”
Shumway’s original plans were to have Wilcox take over Shumway Capital, but plans changed last month and the founder abruptly announced that he would return all investor capital.
Here’s the letter Shumway last wrote to investors:
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