Hedge Fund Lonestar Capital to Shut Down
Founder Jerome Simon to Manage Own Family Office
The San Francisco hedge-fund firm Lonestar Capital Management LLC will shut down in one of the larger hedge-fund liquidations this year, according to people familiar with the firm.
Based in San Francisco, Lonestar manages about $1 billion, including funds from deep-pocketed investors like David Einhorn ’s Greenlight Capital Inc., the people said.
In a letter to investors, founder Jerome Simon called it a “bittersweet moment” and said he was disappointed that recently he could not “claim the very highest ground of perennial outperformance,” according to a person with knowledge of the letter. Its main fund was down more than 2% this year through the end of October, compared with a 1.6% gain for its peer event-driven hedge funds tracked by HFR Inc.
Mr. Simon will manage his own fortune in a so-called family office once the shutdown is complete, in mid 2015.