Walker Smith to shut
August 30, 2012
Founders Reid Walker and Stacy Smith cite the lack of permanent capital and a changed investment landscape.
WS Capital Management, Reid Walker and G. Stacy Smith’s Dallas-based small- and mid-cap equity hedge fund firm, is shutting down.
A letter sent on August 28 to investors in the approximately $550 million shop cited two broad reasons for the closure: the increased macroeconomic risks for stock pickers and the firm’s frustrations with increasing liquidity and operational demands.
“For a long short fund that focuses on stock picking, the market gyrations and correlation that are driven by macro events are frustrating,” Walker and Smith wrote in the letter. “We would rather see a market crash and full cycle rather than continue to...
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