NEW YORK (HedgeWorld.com)–Gotham Investment Management Co. LLC began winding down its hedge funds.
Once known as a feisty hedge fund manager willing to publish long, critical analyses of companies it held bearish positions on, Gotham will go down as another successful hedge fund manager who took a wrong turn and got into a liquidity crunch. According to the Wall Street Journal, the company was burned by a large position as a golf-course operator, as well as by increased redemption requests from its investors. Because Gotham held many illiquid investments, the firm reportedly was seeking cash to meet those requests.
Rather than fight the tide, Gotham apparently is liquidating all investments. Gotham co-founder William Ackman didn’t return phone calls, and a spokesman for the company, Owen Blicksilver, said Gotham officials declined comment.