Bowman Capital to Return Hedge Fund Assets.Business Editors SAN MATEO San Mateo (săn mətā`ō), city (1990 pop. 85,486), San Mateo co., W Calif., on San Francisco Bay; inc. 1894. It is a commercial and retail center with some high-technology manufacturing. San Mateo, Spanish for St. , Calif.--(BUSINESS WIRE)--Dec. 27, 2001 Technology-focused investment management firm Bowman Capital today announced that it would return the assets from its four successful hedge funds hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" to investors, and focus on its ongoing Crossover Fund Crossover Fund An investment fund that invests in both public and private equity. Notes: These funds are typically high yield/high growth funds. See also: Hedge Fund, Mutual Fund (which includes both public and private equities) and Private Equity Fund II. Founder Lawrence A. Bowman cited a combination of factors in his decision to return the investments long before expiration of their "lockup See hang and abend. " periods. "After seven rewarding and demanding years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time personal sacrifices required to generate superior returns with multiple, large, complex funds in this volatile environment are more than I'm willing to make. So I believe it's in the best interest of our investors, our team and myself to return these assets, and thereby shrink and simplify the business," Bowman said. "We've had a spectacular run comprising six great years and one poor year, and I'm proud of our overall returns," Bowman added, "But a combination of personal factors, business pressures, and my expectations of continued market volatility make it the right time for us to make this change." Approximately $1.5 billion of investments in Bowman Capital's two domestic and two offshore hedge funds will be returned during the first quarter of 2002. Bowman said he and an experienced team of senior partners and analysts will continue active management of the Crossover Fund and Private Equity Fund II. The firm launched its first domestic hedge fund, now called the Institutional Fund, in February 1995. Through November 2001, the Institutional Fund generated a cumulative return of 936%, before fees, equaling an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. gross return of 41%. During the same period, the Nasdaq Composite Index Nasdaq Composite Index An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed provided 156% cumulative and 15% annualized returns, and the S&P 500 Index provided 172% cumulative and 16% annualized returns. The firm's second domestic fund, the Founders Fund, launched in July 1997, provided a cumulative return of 557% equaling an annualized gross return of 53%. This compares to the Nasdaq's 34% cumulative and 7% annualized returns, and the S&P 500's 37% cumulative and 7% annualized returns over the same period. The offshore funds had comparable performance to their domestic counterparts during their parallel periods of operation. |
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