Milwaukee-based hedge fund Stark Investments is closing its doors after over 20 years in business.
Stark, which employed more than 400 people and managed more than $14 billion at its peak, is shutting down all but one of its funds due to declining assets, according to Milwaukee news outlet Journal Sentinel. Client redemptions and other factors brought the firm’s AuM down to $2.1 billion by the end of 2012.
Stark disclosed in a recent filing with the Securities and Exchange Commission that the closure of the funds could take a while because the funds’ holdings are “primarily illiquid, hard-to-value securities/assets.”
eVestment reported last July that Stark was planning to close its three multi-strategy funds - despite positive returns – to concentrate on managing single-strategy funds.
Founded in 1992 by Brian Stark and Michael Roth, Stark Investments originally focused on one strategy: convertible arbitrage. As capital began to flow in, Stark expanded into distressed investing, equity trading and other strategies.