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Hedge Funds

Tourbillon returning assets from its flagship hedge fund

Jason Karp, founder, CEO and co-chief investment officer of Tourbillon Capital Partners

Global long/short equity hedge fund manager Tourbillon Capital Partners will return money managed for external investors in its flagship Global Master Fund at the end of the year.

After thorough analysis, the firm's executives concluded that the firm's primary investment principle — "to isolate and only be compensated for alpha" — is "no longer an optimal way to manage your and our own money," Jason H. Karp, founder, chief executive officer and co-chief investment officer, said in a letter to the firm's clients, obtained by Pensions & Investments.

Mr. Karp said the portfolio, characterized by "very low net exposure, minimal beta, minimal factor tilts and diversification across sectors and position count" delivered "outsized returns" in the first three years and double-digit positive returns since its 2012 inception.

Mr. Karp told investors that he and senior executives of the firm will continue to manage their own money "in a radically different, unconstrained manner that I believe will allow us to focus only on our highest-conviction ideas."

As of June 30, Tourbillon managed $1.2 billion, according to data provided to P&I. As of Feb. 28, the firm managed $3.4 billion, according to its most recent ADV filing with the Securities and Exchange Commission.