Prentice Capital Management is unwinding its side-pocketed
private-company investments, following a writedown of 7.7% in
the fourth quarter on Levitz Furniture. The firm has tapped two
senior analysts to co-head the effort.
Side-pocket investments now make up 30% of the $1.5 billion
hedge fund, whose management team left Steve Cohen's SAC
Capital Advisors in 2005. The firm plans to sell all its
private-company investments over time, but the side pocket will
still invest in public securities.
Prentice's decision follows the losses...