Rocky Mountain News – Denver money manager Patrick Adams is bailing from the mutual fund business, concentrating on the fast-growing hedge fund sector.
Adams, who started Choice Investment Management in 1999, said he shuttered his Choice Focus fund and is closing two other stock portfolios, the Choice Market Neutral and Choice Long-Short funds.
The three portfolios, which combined had only $10 million in assets at last count, struggled to spark interest among investors. Small mutual funds such as the Choice products often don’t make economic sense, failing to generate enough in fees to justify the operating costs.
The stock portfolios also performed poorly at times.
“There are too many mutual funds out there,” Adams said in a telephone interview Monday. “For us, it’s not a business we see as profitable. On the other hand, in the hedge fund business, that’s something that’s very attractive.”
