Fortitude Capital’s co-founder and chief executive Tim McGowen has resigned from the hedge fund firm, effective May.
Fellow co-founder founder John Corr said he will assume some of McGowen’s responsibilities and some will be delegated to the group’s seven staff.
“It’s been great building a successful business with Tim, and whilst his resignation is unfortunate, he leaves us with a very strong investment and support team,” Corr said.
Corr said he knows McGowen has been frustrated with the lack of support for Fortitude’s Absolute Return Trust from local institutions.
The product gained 10.86 per cent for the 12 months to February.
“We have had to source 80 per cent of our money from overseas because there’s more of an understanding about market-neutrality as an asset class offshore,” Corr said.
Fortitude manages $150 million and operates a domestic managed account for BT as part of the BT Total Return Fund of Funds.
McGowen in the past has criticised ASIC’s ban on covered short-selling of financial securities.
“For a long time now the government’s told us that our banking system is well regarded and well rated,” McGowen said in a January interview.
“In fact our four major banks rated very highly worldwide and don’t have the same problems the US and European banks in particular do.
“So fundamentally there shouldn’t be the same impact here; you’re not going to see our banks fall 50, 60 or 70 per cent overnight.”
