WEST PALM BEACH, FL (HEDGECO.NET) – Saranac Capital Management is to close after less than 18 months in business. The hedge fund started with $2.9 billion under management in December of 2004, butunimpressive performance saw investors withdraw their investments over the following months.<\/p>\n
The hedge fund was managed by former Citigroup trader Ross Margolies. At Citigroup, he ran about $3.25 billion in hedge funds and managed the $1.6 billion Salomon Brothers Capital Fund to 18 percent annual. In this hedge fund however, the broad-based collapse in Saranac\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s complicated strategies caused Margolies to close the fund because the fees generated were not enough to pay his 45-person staff. The remaining $600 million of the original capital still under Saranac\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s management will now be returned to investors. <\/p>\n
As Saranac launched its first trades in the winter of 2005, convertible and equity-arbitrage strategies began a nearly year-long decline. Saranac\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s closing shows that even fund managers with solid track records and access to billions in capital are under pressure to deliver profits. <\/p>\n
The closure comes comes amid increased competition, but some also see it as a warning to hedge fund investors, who have been attracted in the past by high-profile fund managers promising huge returns on their money. <\/p>\n
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net <\/p>\n
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! <\/p>\n
Be sure to check out our sister sites. www.hedgefundlounge.com<\/a>, www.hedgefundtools.com,<\/a><\/strong> and www.hedgefundemployment.com.<\/strong><\/a> <\/p>\n <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" WEST PALM BEACH, FL (HEDGECO.NET) – Saranac Capital Management is to close after less than 18 months in business. The hedge fund started with $2.9 billion under management in December of 2004, butunimpressive performance saw investors withdraw their investments over […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4464","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4464"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4464\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}