New York (HedgeCo.net) – John Henry, perhaps best known as principal owner of the Boston Red Sox, has announced the firings of roughly one quarter of the staff at his Boca Raton, FL based investment company, John W. Henry & Co. According to the Boston Globe, the layoffs included a cross-section of workers because the firm, as Henry stated, “has been overstaffed for some time relative to its size.”
The firm, which manages or co-manages seven different futures or commodities-themed hedge funds, manages $188 million, not to mention an additional $200 million it co-manages with other firms. The investment manager, whose clients include the institutional likes of retirement plans, insurers, and the high net worth, has seen its assets under management fall from as high as $2.5 billion in 2004.
Henry’s funds, which boast relatively loose liquidity terms, suffered heavy redemptions dating back to 2008. Specifically, last fall many institutional investors were unable to withdraw their funds from less-liquid private equity and hedge fund investments which featured lengthy lockup provisions. As a result, many took advantage of their relatively easy access to Henry’s funds, withdrawing considerable sums and dramatically shrinking the firm’s assets under management.
In 2008, Henry’s firm performed impressively, with its larger funds posting returns from 40 to 90 percent. In 2009, however, those same funds were down between 6 and 21 percent between Jan. 1 and Oct. 31.
Contributing Writer, HedgeCo.net