Hedge Funds

JAT assets nearly halved following 19.6% loss last year

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John Thaler's now-$1.3 billion firm shows strong January to begin comeback.

John Thaler's JAT Capital Management has shrunk to $1.3 billion from $2.4 billion just one year ago, squeezed by a difficult combination of poor performance and redemptions, according to people close to the firm.

The money fled as JAT turned in a gruesome 2012, with the flagship TMT-focused global equity fund down 19.6% compared with a 6.12% rise for the Absolute Return Global Equity Index. The fund launched in January 2008 and lost 6.6% that year, but recovered and generated double-digit returns of 19.8% in 2009, 10.4% in 2010, and 17.2% in 2011. Including last year's loss,