Hedge fund Latimer Light says it is shutting down

BOSTON (Reuters) – Hedge fund Latimer Light Capital, which specialized in picking stocks, is closing its doors, becoming the latest casualty in an industry pummeled by the recent stock market sell-off.

New York-based Latimer Light told investors it plans to shut down in a letter it emailed on Friday, according to people familiar with the matter. A spokesperson for the firm declined to comment.

The firm was founded three years ago by Scott Phillips, who spent nearly a decade working for Stephen Mandel’s Lone Pine Capital, one of the industry’s most respected hedge funds.

Now Phillips joins a growing list of managers in the $3 trillion industry to call it quits as tumbling markets are prompting ever more hedge fund clients to ask for their money back. In the last months Highfields Capital and Tourbillon Capital announced plans to shut down.

Latimer Light had been operating for three years and at the end of last year, the firm had roughly $555 million in capital, according to a regulatory filing.

It invested primarily in stocks of high-growth companies or companies with solid businesses that were under-managed, the regulatory filing said.

At the end of the third quarter it owned computer software and services company PTC Inc., and video game holding company Take-Two Interactive Software Inc. among other stocks, according to another regulatory filing.

This year has been especially tough for hedge funds. The stock market sell-off in the fourth quarter cost many a lot of money and prompted clients to run for the exits.

The average fund lost 2.1 percent in

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