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Julian Robertson offshoot crushed by rising market

CNBC – Axial Capital Management, the once-$1.8 billion hedge fund firm seeded by Julian Robertson of Tiger Management, is shutting down following several years of losses fueled by short bets against stocks, according to two people familiar with the situation.

The flagship Axial Capital fund lost 15.4 percent net of fees this year through September according to investor materials obtained by CNBC.com.

Its long bets on stocks gaining rose 17.6 percent, but its shorts declined 33.1 percent—all as the S&P 500 Index rose 23.6 percent for the year. As of Sept. 30, Axial was 38.6 percent net short, meaning its 70 short bets outweighed its 16 longs.

The fund also lost 6.3 percent in 2012; gained 0.3 percent in 2011; and declined 10.2 percent in 2010 and 11.1 percent in 2009. Each year, its short bets lost money.

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