Pequot closes three funds

by

Pequot Capital Management will shutter three of its smaller hedge funds and say goodbye to two portfolio managers by yearend.

The Westport, Conn.-based firm’s Pequot Strategic Equity Fund, Pequot Event Driven Fund and Pequot Dynamic Strategies Fund all launched in 2006 at the firm’s San Francisco offices and struggled with performance this year. The firm manages $7.5 billion, up slightly from $7.3 billion in Dec. 2006.

The Event Driven Fund, which launched in June 2006, was down 1.1% through October, and its manager, Steve Pigott, will depart by yearend. Carson Levit, who produced an 11.09% return through the same period