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5yrs ago Hedge Fund hfm.global Views: 347

Precocity Capital, a hedge fund started by former S.A.C. Capital Advisors executive Nick Tiller, plans to shut down by the end of the month, two people familiar with the matter said.

Tiller announced the closure in a letter to investors, one of the people said. Precocity fell 14.5% last year after losing 1.2% in 2017, the person said.

The Stamford, Connecticut-based firm managed more than $1 billion at the end of 2017, including borrowed money, according to regulatory filings.

Precocity did not immediately respond to requests for comment.

Formerly a top portfolio manager at S.A.C., Tiller began trading with Precocity in the first half of 2016. Precocity focused on stocks in the energy and agriculture sectors, which Tiller oversaw at S.A.C. before leaving the firm in 2013.

Tiller pitched Royal Dutch Shell during the 2016 Sohn Investment Conference in New York, predicting the stock would double as it expanded into natural gas through the acquisition of BG Group and cut expenditures. He also predicted the demand for oil would continue growing through 2030, bolstering the company’s core business.

Before starting Precocity, Tiller founded a non-profit called Sustainable America that aims to increase the efficiency of food and fuel production in the U.S. He remains a member of the organization’s board of trustees.

Precocity’s shutdown adds to a series of energy hedge fund closures. Bronson Point Capital Management, run by former S.A.C. portfolio manager Larry Foley, closed in November last year after suffering losses of 15% in October.

Dallas-based Brenham Capital Management also said it would close in November after losing money for two straight years. In a letter to investors, Brenham founder John Labanowski said, “I continue to witness some truly bizarre stock action in the energy sector that is hard for me to make sense of and I’m not sure when this situation will improve.”

Precocity shutters following losses on energy bets on Absolute Return.


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