SuNova Capital is closing down, a victim of its strategy as a long-biased long/short equity fund concentrated on investing in financial stocks. The firm's flagship fund lost nearly 23% this year through September 30, following a return of less than 1% in 2007. The fund's net annualized return is now a little under 7%, down from about 12.5% at yearend 2007, according to an investor.
SuNova's holdings included numerous troubled financial stocks, such as PNC Financial Services and CIT Group, and the firm's performance was matched by a precipitous decline in its assets under management. SuNova managed $1.28