Tiger Management offspring Cascabel Management is shutting down.
Cascabel, a stock-focused hedge fund, is closing following consistent losses, reports the Wall Street Journal. Founded in 2008, Cascabel had $350 million in assets under management at its peak. Co-founder Laurence Chang was a senior portfolio manager at Avenue Capital Group, and partner Scott Sinclair was a Tiger analyst. Tiger Management supported the little cub fund, and housed them in the same office building in Manhattan. Tiger currently has 27 “cub” firms it has helped fund.
Cascabel initially kicked off with a 29% gain in 2009, but was decimated with 18% losses in 2011 and a 17% drop last year. Since its founding, the firm is up about 5% total.
Cascabel is just one of the 10% of hedge funds that die every year. Meredith Whitney announced last week that her Kenbelle Capital closed after struggling. JAT Capital Management gave up on the hedge fund life and turning into a family office.
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