Highfields Capital Management

Richard Grubman and Jonathon Jacobson met at an investment lunch in New York City in the early ‘90s and started a friendship. In 1998, they opened Highfields Capital Management LP together in Boston, Massachusetts.{{Cite news |last=JOURNAL |first=David Armstrong and Henny SenderStaff Reporters of THE WALL STREET |date=2005-02-16 |title=Highfields Capital Has Agitator Past |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/SB110851383271355970 |access-date=2020-01-06 |issn=0099-9660}}

Highfields has invested in publicly traded equities and private companies like Harry & David, Michaels, Genworth Financial, Microsoft{{Cite web |last=Ovide |first=Shira |date=2013-09-04 |title=Microsoft Investor Highfields Reacts to Nokia Deal |url=https://blogs.wsj.com/digits/2013/09/03/microsoft-investor-highfields-reacts-to-nokia-deal/ |access-date=2020-01-06 |website=WSJ |language=en-US}} and SLM Corporation;{{Cite news |date=2010-05-27 |title=Hedge fund managers look to lenders and banks |language=en |work=Reuters |url=https://www.reuters.com/article/us-investing-hedgefunds-sohnconference-idUKTRE64P74I20100527 |access-date=2020-01-06}} and other investments including reinsurance sidecars. Grubman and Jacobson gained attention and a large payoff when they bet against Enron before the 2001 bankruptcy.{{Cite news |date=2018-10-03 |title=Hedge fund Highfields to shut down, founder says in client letter |language=en |work=Reuters |url=https://www.reuters.com/article/us-hedgefunds-highfields-idUSKCN1MD2R5 |access-date=2020-01-06}} In February 2012, Highfields called for management change at CoreLogic,[http://www.dealbook.nytimes.com/.../highfields-calls-for-ouster-of-corelogics-management/ "Highfields Calls for Ouster of CoreLogic's Management"]{{Dead link|date=January 2020 |bot=InternetArchiveBot |fix-attempted=yes }}, New York Times, February 28, 2012. Retrieved 2012-11-07. in which it had a 7.65% stake.

In 2010, Highfields was listed as having $10 billion of assets on January 1, 2010, 30th in The Hedge Fund Journal Top 50, up from $9.3 billion on July 1, 2009 and up from a 38th-place ranking in 2008.

In 2013, Highfields returned $2 billion to clients. As Jacobson wrote to investors, "we would rather be slightly smaller and generate better [returns]."{{Cite news |date=2013-10-02 |title=Highfields Capital to return up to $2 billion to clients |language=en |work=Reuters |url=https://www.reuters.com/article/us-hedgefunds-highfields-idUSBRE9910P320131002 |access-date=2020-01-06}}

In October of 2018, Highfields announced in a letter that they would return all outside capital{{Cite web |title=Highfields is Latest High-Profile Hedge Fund to Shut Down |url=https://www.institutionalinvestor.com/article/b1b7kp936vybfj/Highfields-is-Latest-High-Profile-Hedge-Fund-to-Shut-Down |access-date=2020-01-06 |website=Institutional Investor |language=en-gb}} and would convert into a family office.{{Cite news |date=2019-10-23 |title=Vinik to shut down hedge fund, says raising cash 'much harder' than expected |language=en |work=Reuters |url=https://www.reuters.com/article/us-hedgefunds-vinik-idUSKBN1X22KO |access-date=2020-01-06}} In a third quarter letter to investors, Jacobson wrote, “Done correctly, money management is an all-consuming, 24/7 pursuit… After three-and-a-half decades of sitting in front of a screen, I realized I am ready for a change."{{Cite web |last=Chung |first=Juliet |title=Hedge fund Highfields Capital to close, return billions to clients |url=https://www.marketwatch.com/story/hedge-fund-highfields-capital-to-close-return-billions-to-clients-2018-10-03 |access-date=2020-01-06 |website=MarketWatch |language=en-US}}

Over the 20 years between 1998 and 2018, Highfields only lost money in two years: 2002 and 2008.

Richard Grubman and Jonathon Jacobson co-founded Highfields Capital Management LP in 1998.McIntosh, Bill, ed., [http://www.thehedgefundjournal.com/magazine/201003/research/thfj-us50-2010-second-edition-.pdf "The US50"], The Hedge Fund Journal in association with Newedge Prime Brokerage Group. Retrieved 2012-03-27.

Grubman retired in August 2010; Jacobson remains a principal of the firm.{{Cite web|url=https://www.businessinsider.com/richard-grubman-retiring-2010-8|title = Hedge Fund Manager Who Threw Keys at a Valet is Retiring for Family Reasons}}

Jacobson is an undergraduate alumnus of Wharton School in finance and has an MBA from Harvard Business School.[http://www.hedgefundletters.com/category/highfields-capital-management/ "Highfields Capital Management"], Hedge Fund Letters, n.d. Retrieved 2012-11-07. After working as an options trader and at Merrill Lynch and Lehman Brothers, he joined Harvard Management Company in 1990.{{Cite web |date=January 6, 2020 |title=Hating to Lose |url=https://www.valueplays.net/wp-content/uploads/ValueInvestorFebruary-2006.pdf |website=Value Plays}} In 1998 Jacobson left HMC to co-found Highfields with a third of the fund's initial $1.5 billion under management coming from HMC. Bloomberg reported in 2011 that Harvard Management Company no longer invested with Highfields.Wee, Gillian, [https://www.bloomberg.com/news/2011-03-02/harvard-s-crimson-cubs-with-43-billion-dwarf-their-former-endowment-home.html "Harvard's Crimson Cubs With $43 Billion Dwarf Their Former Endowment Home"], Bloomberg, March 2, 2011. Retrieved 2012-11-07.

{{reflist}}

• [https://www.highfieldscapital.com/default.aspx Official website]
• [http://www.marketwatch.com/story/highfields-capital-managements-top-stock-picks-2013-07-16 Highfields Capital Management's top stock picks]

{{Hedge funds}}

Category:Hedge fund firms in Boston