Tyrian Investments is preparing to close their event-driven, long / short hedge fund, according to two sources close to the fund who spoke to ValueWalk on condition of anonymity. The fund was down in 2015 and off -15% in 2016 as of the third quarter, according to a source familiar with the fund.
Update: Thursday afternoon the fund confirmed they are shutting down and provided ValueWalk their letter to investors.
The fund was initially seeded by hedge fund luminary Julian Robertson, chairman of Tiger Management LLC, with nearly $1 billion in capital. The shuttering of Orlando Muyshondt’s investment research driven firm comes as fellow “Tiger Cub” Glade Brook Capital Partners LLC also announced they were closing their original fund, according to Lawrence Delevingne of Reuters.
Also see Q3 2016 Hedge Fund Letters
Tyrian Investments packs up
Tyrian was founded in January 2010 by Orlando Muyshondt with a reported $1 billion in assets raised. The hedge fund now has a reported $259,518 under management. Two sources familiar with the matter described a tense work environment compounded by much frequent trading.
Muyshondt, a Columbia business school graduate, has over a twenty-year career in finance, starting as an auditor at KPMG, then in 1994 moving to become a portfolio manager at Merrill Lynch, where he stayed for eight years, according to his Linkedin profile. He then worked at Gracie Capital, an event-driven, multi-strategy fund, for seven years before going out on his own.
According to the fund’s website, they used significant research to find opportunities.
“Tyrian’s strategy utilizes a fundamental research process and takes a value-oriented approach toward finding investment opportunities characterized by change,” the website stated. “The investment team seeks to identify significant mispricing and market inefficiencies to build a concentrated, bottom-up portfolio of ‘best ideas.’”
In a letter to investors reviewed by ValueWalk, the fund noted it had liquidated most of its holdings as of November 17:
After careful consideration, we have decided to wind down the Tyrian Global Opportunities Fund LP (the “Fund”) and compulsorily withdraw all investors as of November 18, 2016. In anticipation of winding down the Fund, we have liquidated almost all of the Fund’s assets. One position, which currently constitutes approximately 2.2% of the portfolio (the “Specified Position”), may take longer to sell, but we will seek to sell this position before the end of the year. We expect to distribute to each investor in the Fund by the end of this month approximately 93% of the net asset value of each investor’s interest, and, pursuant to the Fund’s offering documents, we will hold back approximately 5% of the net asset value which will be distributed no later than 30 days following the completion of the Fund’s final audit for 2016. We will also distribute to you the proceeds from the Specified Position after it is sold.
We greatly appreciate the trust that you placed in us when you invested with us, and we are grateful for your continued faith and support over the years.
“Please contact me if you have any questions.”
(ValueWalk had previously reported a large SPY put position which the fund later said was not part of their portfolio exposure.)