The Art of growing old

28 May 2009 By Richard Beales Follow @richardbeales1

Art Samberg is shutting his 23yearold hedge fund after assets dwindled amid an inconclusive multiyear insider trading probe. The closure shows how even a long record of betterthanaverage performance couldn t overcome the new world of picky investors and official scrutiny.

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Art Samberg, who founded the Pequot hedge fund group in 1986, is closing the firm, spinning off two specific funds but otherwise winding it down.

In a May 27 letter to investors Samberg, 68, said the pressure of government investigations – running on and off since 2001 but yet to result in any charges – had made the situation increasingly untenable for the firm and for me.

The firm had $15bn under management at its peak, and currently manages about $3bn. It delivered returns to investors of 16.8% annually over 22 years against the S&P 500 return of 8.5%, 10.1% a year over the last five years and 1.8% this year through April. Its funds were down less than the 19% average for hedge funds in 2008.

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