Passport to Shut Global Hedge Fund After ‘Unacceptable’ Returns
- Burbank’s firm will close flagship fund at the end of 2017
- Profitable subprime housing bets boosted returns after crisis
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John Burbank’s Passport Capital, which shot to fame for its lucrative bet against subprime housing ahead of the global financial crisis, will shutter its flagship hedge fund after returns slumped.
The fund’s “returns over the past two years are unacceptable and cause me to rethink how to manage money in this environment,” Burbank wrote in a Dec. 11 letter to investors, the contents of which were first reported in the Wall Street Journal. Passport Capital will continue to focus on its Special Opportunities Fund and the Saudi share class, according to the letter.