David Felman is out at Andor Capital Management.
With his two hedge funds at the $8.2 billion firm down 17.5% and 21.5% through November, Felman is history, according to a letter sent to investors, and reported by
, an industry newsletter.
It was a humble end for the former manager of the $7.1 billion
Fidelity Mid-Cap fund, who left the mutual fund manager in June 2001 to run the $1.3 billion Andor Diversified Growth Fund and the $250 million Andor Growth Perennial Fund. With $9 billion in assets under management as of May, according to Hedge Fund Intelligence, Andor Capital Management was at the time the world's second-largest hedge fund. Caxton Associates was credited as the world's largest hedge fund manager, with $10.5 billion.
The $1.3 billion Diversified Growth fund dropped 17.5% for the year to date, and the $250 million Perennial Growth fund was down 18%, the investor letter said. The smaller fund is being liquidated March 1, Andor wrote.
The funds are now being managed by Chief Investment Officer Chris James, who helped found Andor two years ago with technology investing star Dan Benton. Benton parted ways with Arthur Samberg, with whom he founded Pequot Capital Management, in April 2001, dividing the assets of the $15 billion fund, which was then the world's largest.
James did not return a call seeking comment.
The letter said James and Benton will co-manage all of Andor's funds, but Benton will have his hands full trying to get his Andor Technology Fund back on track. That fund is down 14% for the year to date, while the
Nasdaq Composite Index
is up 44% for the year to date.
Investors in the two lagging funds have until Feb. 1 to decide if they will keep their money with the firm. Investors in the Growth Perennial fund, which is closing, can invest in any of the firm's other open funds. Backers of Felman's larger fund are also being given the option of moving their money to other funds.
reported that fees will be waived until investment losses for this year are recouped.
Andor took in $1.5 billion in the 12 months between May 2002 and May 2003.