Key Takeaways
- • Patrick McCormack is shutting down Tiger Consumer Management at the end of March 2015 after nearly 15 years of operation, citing a desire to spend more time with family despite strong fund performance.
- • Tiger Consumer Management managed approximately $2.2 billion as of December 31, 2013 (its last public filing date), and was up 3.9 percent through February 2015, indicating the closure was not driven by performance deterioration.
- • McCormack was seeded by Julian Robertson in 2000 as one of Robertson's original "Tiger seed" hedge funds, a notable lineage that included Tiger Global, Tiger Asia, and Tiger Ratan among other offspring funds.
- • The fund's closure marks another departure from the Tiger ecosystem, representing broader industry trends of established managers stepping back from active management.
Summary
Patrick McCormack, founder and lead manager of Tiger Consumer Management, announced the shutdown of his hedge fund effective March 31, 2015, citing personal reasons rather than financial distress. In a letter to investors dated Wednesday of the announcement week, McCormack stated: "Managing a fundamentally driven, long/short equity hedge fund is rewarding but demanding work. I have decided after nearly 15 years of doing so, at this stage of my life, I would like to spend more time with my family." He characterized the wind-down decision as "one of the most difficult I have faced," but indicated that the timing was appropriate "particularly given a strong start to the year."
Tiger Consumer Management's closure comes despite solid investment performance, underscoring that the fund's exit was driven by lifestyle considerations rather than operational or market pressures. The fund was up 3.9 percent through February 2015 and had managed approximately $2.2 billion in assets as of its last public filing on December 31, 2013. The fund's recent positive returns reflect no deterioration in McCormack's investment management capability and suggest the decision reflects a deliberate choice to retire from active fund management.
McCormack's Tiger Consumer Management traces its origins to Julian Robertson's Tiger Management, the legendary hedge fund pioneer who launched the Tiger seed program in 2000. McCormack received start-up capital from Robertson as one of the earliest Tiger seed investments, placing him among a cohort of Robertson protégés who established their own independent hedge funds. Other prominent Tiger seeds originating from Robertson's 2000 initiative included Tiger Global, Tiger Asia, and Tiger Ratan. McCormack declined detailed comment to press, with a spokesman for Tiger Management also declining to provide additional remarks on the closure.
Tiger Consumer Management's closure comes despite solid investment performance, underscoring that the fund's exit was driven by lifestyle considerations rather than operational or market pressures. The fund was up 3.9 percent through February 2015 and had managed approximately $2.2 billion in assets as of its last public filing on December 31, 2013. The fund's recent positive returns reflect no deterioration in McCormack's investment management capability and suggest the decision reflects a deliberate choice to retire from active fund management.
McCormack's Tiger Consumer Management traces its origins to Julian Robertson's Tiger Management, the legendary hedge fund pioneer who launched the Tiger seed program in 2000. McCormack received start-up capital from Robertson as one of the earliest Tiger seed investments, placing him among a cohort of Robertson protégés who established their own independent hedge funds. Other prominent Tiger seeds originating from Robertson's 2000 initiative included Tiger Global, Tiger Asia, and Tiger Ratan. McCormack declined detailed comment to press, with a spokesman for Tiger Management also declining to provide additional remarks on the closure.
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