Pirate Capital, the Norwalk, Conn.-based event-driven hedge fund firm founded by ex-Goldman Sachs distressed bank debt trader Thomas Hudson, is likely to limit monthly subscriptions for its Jolly Roger Fund. The fund wants to smooth out its inflows because it has increased its assets by $150 million over the past four months, said Andrew Stotland, director of sales and marketing.
The fund has grown its assets from $65 million to $345 million over the past year on the back of net annual returns of almost 30%. "We don't want $200 million coming in a month," he noted. The firm already has commitments lined up of $40-50 million for February.
Pirate invests in small-, mid- and large-cap companies across the capital structure. The firm, which was the focus of a feature on hedge funds in New York magazine last November, also has grown its investment team from two to five over the past year. It is now planning to bring on board two analysts next month and is searching for a cfo.