BOSTON (Reuters) – Hedge fund JAT Capital Management is returning money to outside investors to restructure itself as a family office, a person familiar with the $1.7 billion firm said on Tuesday.
JAT, founded in 2007 by John Thaler, had become an industry
darling after posting a 20 percent gain in 2009.
But it faced tougher times more recently, posting double-digit losses in 2012 and 2014.
Thaler, who focused on telecommunications, media and technology stocks, told investors this was the “right moment to take a break.”
Family offices tend to manage money only for an individual or a family.
Thaler’s firm joins a growing number of hedge funds that are closing their doors to outsiders as picking stocks becomes more difficult.
At the end of the first quarter, JAT’s biggest position was Time Warner Cable Inc, followed by Twitter Inc and Yahoo Inc.
The news was first reported by the Wall Street Journal.
A spokeswoman for the firm declined to comment.
(Reporting by Svea Herbst-Bayliss)