Equity Manager Plymouth Lane Calls It Quits
Plymouth Lane Capital is shutting down.
The New York equity shop’s management made the call to unwind in the past few weeks. Its rationale is unknown, but the rate of hedge fund liquidations has increased amid a sustained performance slump. Nearly 300 funds shut down in the first quarter, versus a little more than 200 launches, according to Hedge Fund Research. That was the highest liquidation count for the quarter since 2009.
Plymouth Lane was running $156 million at yearend 2015, down from $179 million a year earlier. It is led by founder Jonathan Salinas, who formerly was an analyst at Marble Arch Investments.
Plymouth Lane’s past investments have included an 11% activist position in Martha Stewart Living and a smaller stake in Scientific Games, both of which were initiated in 2014. While Martha Stewart’s stock was up during the time Plymouth Lane owned it, the firm didn’t get as high a price as it wanted when Sequential Brands took the company private in December 2015. Meanwhile, Scientific Games’ shares were volatile during the period in which Plymouth Lane owned them.
Plymouth Lane launched a U.S. version of its fund in June 2013 with some $65 million. It added an offshore vehicle in August 2014 with $10 million. Both sought low net exposures with a fair amount of volatility.
As for Salinas, he starts this month as chief operating officer at Hound Partners, a New York firm that runs long/short and long-only funds. Hound is led by former Ziff Brothers Investments analyst Jonathan Auerbach. It finished 2015 with $4.6 billion under management.
Salinas started at Marble Arch in 2009, following stops at Ziff Brothers unit ZBI Equities, Festina Lente Investment and UBS. Plymouth Lane’s staff also has included chief financial officer Michael Jemal, general counsel Mark Kronfeld, senior analyst Chris Woolford and analysts Allan Chen and Jonathan Cohen.