New York Times – Russell Herman, the chief executive of the hedge fund firm Dawson-Herman Capital Management, is the latest manager to shutter his fund after heavy losses last year and differences with the firm’s founder, Jonathan Dawson.
Mr. Herman told clients in a letter last week that he was shutting the Southport Millennium Funds and returning capital to investors. The move was first reported by Dealbreaker.com on Friday. The firm currently has about $902 million of capital under management after reaching a height of $3.2 billion at the beginning of 2008.
Like many in the hedge fund industry, Dawson-Herman suffered big losses last year. The main Southport fund was down more than 35 percent and has failed to make up for the losses this year. “We have not been able to build the portfolios with high conviction ideas and themes to the degree that is satisfactory to me and in line with our historical standards,” Mr. Herman said in the letter.