Hedge Funds

Pirate Capital loses investment staff


Pirate Capital, the $1.8 billion activist firm founded by Tom Hudson, told investors in a letter yesterday that three investment professionals resigned from the firm this week and another two were asked to leave, according to news reports.

Pirate has also said it will stop accepting fresh capital. As reported in the October issue of Absolute Return, the firm decided to soft-close its funds at $2 billion.

The once high-flying Pirate, of Norwalk, Conn., is wrestling with poor performance and faces an inquiry by the U.S. Securities and Exchange Commission regarding the disclosure of the sale of stock.