David Iben, head of the global value group at Vinik Asset Management, plans to form his own independent investment management company, possibly based in Vinik's Tampa, Fla., office, according to an investor letter obtained by Bloomberg News.
The move comes as Jeff Vinik, the former Fidelity Investments stock picker turned hedge fund manager, is shutting his Vinik Asset Management to focus on charitable work and the Tampa Bay Lightning, the professional hockey team he bought in 2010.
Vinik Asset Management will return all of the capital it manages for outside investors at the end of June, according to the letter.
“While we are very proud of our excellent long-term record of 17% annualized returns since we started VAM in 1996, the last 10 months have been more difficult,” Mr. Vinik said in the letter, adding that his fund is down 4.8% since last July. The firm had $6 billion under management as of March, according to an investor presentation.
Mark Hostetter, vice chairman of Vinik Asset Management, declined to comment further. Mr. Iben could not be reached.