Maverick Capital

Last updated
Maverick Capital
Company type Private company
Industry Investment management
Founded1993;32 years ago (1993)
Founder Lee Ainslie
Headquarters,
Products Hedge funds, investments
AUM US$12.5 billion (2022) [1]
Website www.maverickcap.com

Maverick Capital is an American hedge fund firm. It was founded by Lee Ainslie in 1993, who was a "Tiger Cub" under Julian Robertson at Tiger Management. [2]

It primarily invests in shares (avoiding bonds, commodities, currencies, and options), holding both long and short positions and buying what it thinks will beat the market. [3] It employs fundamental analysis and examines management closely. It examines companies for "good capital-allocation decisions", and especially how incremental returns on invested capital compare to the cost of capital. [4]

History

Maverick Capital was founded by Lee Ainslie in 1993, who was a "Tiger Cub" under Julian Robertson at Tiger Management, helped raise $38 million in capital by the family of Texas entrepreneur Sam Wyly. [2] From 1995 to 2014, the fund returned a compounded return of 13% annually. [5]

It started to diversify into young companies in 2004 under its flagship equities hedge fund (under David Singer). [5] In October 2014, Maverick announced that it would be hitting the startup scene by launching its first venture capital fund on January 1, 2015. [5] Many of its investments involve healthcare and biotechnology.

By the end of 2015, it carried over $6.9 billion in holdings. [6]

In 2006, Lee Ainslie mentioned "It’s quite frustrating as a shareholder that companies are not using cash more productively for their shareholders, whether by buying back stock or by issuing dividends". Lee Ainslie describes Maverick Capital as a traditional fund that puts greater premium on the value of its relationships with management teams than more "interventionist" hedge funds. [2]

In May 2025, it was reported the company invested in artificial intelligence hardware start-up called 'io', founded in 2024 by Jony Ive, and then acquired by OpenAI for $6.5 billion, subject to regulatory approval. [7]

References

  1. "Form ADV" (PDF). SEC.
  2. 1 2 3 "Inside a hedge fund: An interview with the managing partner of Maverick Capital". Mckinsey.com. Retrieved May 15, 2016.
  3. "Maverick Capital: Here's What This Hedge Fund Company Has Been Buying -- The Motley Fool". Fool.com. 3 June 2015. Retrieved May 15, 2016.
  4. "Lee Ainslie: Not Hedging a Bit -". Ww2.cfo.com. Retrieved May 15, 2016.
  5. 1 2 3 "Hedge Funds Add to Venture-Capital Bounty". The Wall Street Journal. Retrieved May 15, 2016.
  6. "Lee Ainslie - Maverick Capital - 2016 Stock Picks and Performance - Insider Monkey". Insidermonkey.com. Retrieved May 15, 2016.
  7. Gurnam, Mark (May 21, 2025). "OpenAI to Buy AI Device Startup From Apple Veteran Jony Ive in $6.5 Billion Deal". Bloomberg.