|Photo by: Nick Youngson via Blue Diamond Gallery|
Conatus Capital Management founder and portfolio manager David Stemerman is shutting down his firm to run for the governorship in Connecticut. The 48-year-old hedge fund manager said on Tuesday, September 19, that he is batting for a position in the local government although the state fiscal is partly to blame for the downturn of Conatus.
“Connecticut is in crisis,” wrote Stemerman in a letter. “I do not claim to have all of the answers, but as an outsider with a fresh perspective, I believe that I can bring a different approach,” he added.
Republican Stemerman continues that the state has already been on the verge of bankruptcy and they have yet to pass a budget knowing the cutback in the hedge fund industry that affected the state’s tax revenue.
Last August, Conatus’ main fund gained 18 percent. Bloomberg also shared that the annual gain of the firm since its establishment was 5.4 percent.
In 2004, however, under management assets went down from $3 billion.
“I have decided to pursue an opportunity in public service and will be winding down the firm in December,” he told the investors.
Stemerman also notes that he is planning to give his money to the launching of a new fund by Amir Mokari, Conatus’ consumer sector head. Mokari’s firm is set to open in January and will be more focused on telecommunications, technology, consumer and media stocks investment.