Clarium Capital

Last updated
Clarium Capital
Company type Private
Industry Investment management
Founded2002;22 years ago (2002) [1]
Founder Peter Thiel
Defunct2013 (2013)
Headquarters
San Francisco, California, United States [2]
AUM US$350 milliom
Website clarium.com
Footnotes /references
[3] [4]

Clarium Capital Management LLC was an American investment management and hedge fund company pursuing a global macro strategy. It was founded in San Francisco [5] in 2002 by Peter Thiel, co-founder of PayPal and early investor in Facebook. [6] [1] Its assets under management grew to $8 billion in 2008, after which a series of unprofitable investments and client redemptions shrank that to about $350 million as of 2011. [7]

Contents

Function and history

Clarium was an employee-owned firm that invests in public equity (primarily in micro-cap companies), fixed income, and hedging markets. Unlike most funds, which charge clients about a 2% management fee for their total assets invested and an additional 20% performance fee of the increase in the fund's net asset value, Clarium charged a 0% management fee and a performance fee of 25%. [6]

The company stopped working while Thiel worked at PayPal and resumed in 2002. [3] In 2008, Clarium moved its headquarters from San Francisco to New York City. [8] In June 2010 Thiel closed the New York office to consolidate the company into one location at its San Francisco office. [1] By 2011, the company had shrunk by 90%. [9] It was considered defunct by 2013. [10]

Performance

2002

Clarium's 2002 performance, a series of correct bets in the energy markets that global demand would cause an oil shortage, was described by a 2009 Wall Street Journal article as "impressive". [11]

2008-2010

Clarium was down 4.5% in 2008, [12] down 25% in 2009, [13] and down 23% in 2010. [4] For the first half of 2008, the fund had a YTD return of 57.9%. [14] At the start of 2008, the fund had $4 billion in assets under management (AUM), [6] raised to $7.8 billion in June 2008, then dropped to $1.5 billion in July 2009, after investors withdrew money from the fund. [15] It lost most of its value in 2008 on large bets that the US dollar would fall, and AUM reached $681 million in December 2010. [4] [16]

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References

  1. 1 2 3 Kishan, Saijel (Jan 12, 2011). "Clarium Hedge Fund Shrinks 90 percent as Thiel Has Third Losing Year". Bloomberg. Retrieved 4 August 2011.
  2. ↑ "Clarium Capital Management LLC - Company Profile and News". Bloomberg News .
  3. 1 2 "Clarium Capital Management LLC". BusinessWeek. Retrieved June 28, 2010.
  4. 1 2 3 "Peter Thiel's Clarium Hedge Fund Falls 23% This Year"
  5. ↑ Clarium Capital on Google Maps
  6. 1 2 3 "Thiel's Hedge Fund Plummet". New York Post. Retrieved June 27, 2010.
  7. ↑ Burton, Katherine (September 24, 2010). "Clarium's Thiel Says Dollar Is Undervalued as Deflationary Period Looms". Bloomberg. Retrieved 4 August 2011.
  8. ↑ Tate, Ryan. "Facebook Backer Peter Thiel Escapes New York". Gawker. Retrieved 2018-08-17.
  9. ↑ "Clarium Hedge Fund Shrinks 90% as Thiel Has Third Losing Year". Bloomberg.com. 2011-01-12. Retrieved 2023-01-14.
  10. ↑ "Morning Brief: Jana Partners Has Best Year Since 2013". Institutional Investor. Retrieved 2023-01-14.
  11. ↑ Zuckerman, Gregory (September 28, 2009). "Pessimism Exacts a Price on the Skeptics". WSJ. Retrieved 4 August 2011.
  12. ↑ "Hedge Fund Portfolio Tracking: Peter Thiel's Clarium Capital, Q4 2008"
  13. ↑ "Thiel's Clarium Capital reportedly hurting"
  14. ↑ "Clarium hedge fund posts gains of 57.9 percent". Reuters. Retrieved June 28, 2010.
  15. ↑ "The Quick Gutting of Peter Thiel's Clarium Capital" Archived July 8, 2010, at the Wayback Machine . Gawker. Retrieved June 27, 2010.
  16. ↑ Laing, Jon (May 21, 2011). "The Happy Warrior". Barron's. Retrieved 4 August 2011.

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