- Daily Zen
For the past few years, people across the globe have been cribbing about the financial setbacks they are facing due to the recession. Right from corporate employees to entrepreneurs, almost everyone is affected by the recession in some way or the other. This has not stopped companies from striving hard to expand themselves. We have witnessed remarkable acquisitions and also shutdown of companies. Companies have become cautious about their financial decisions and want to make sure that they cause minimum harm to the money they have and their reputation in the market. Same is the case with Viking Global Investors. The hedge fund firm is returning investments to the respective parties due to change in plans.
Viking Global Investors is one of the largest hedge fund firms in the world. The organization currently manages finances worth $30 billion which makes it such a prominent name globally. The news of returning a huge amount of money to its investors sparked rumors about the downfall of this firm. On further evaluation, one will notice that the company has attained a 7.1 percent rise in the first quarter of 2017. This was a direct rebound after its 4 percent drop in the previous year. This drop was said to be the biggest low ever for the company since it was founded in 1999. Despite this, the company made sure that it will cover the loss and also made a profit.
Dan Sundheim has been a part of Viking Global Investors for the past fifteen years. He took reigns as the Chief Investment Officer of the firm in the year of 2014. After the hedge fund firm incurred the biggest loss ever since its inception, Sundheim released news about his departure. The firm announced news about its CIO’s resignation by releasing a letter on Monday. The firm has decided to return $8 billion to its investors as Sundheim is stepping down by the end of this month.
The amount to be returned adds up to be almost a quarter of the capital the firm currently possesses. The announcement letter further elaborated that Viking Global Investors will return a sum of $8 billion to its investors in the beginning of August. This will enable the investors to hold more liquid and smaller positions. The sole purpose behind the resignation of Sundheim is so that he can concentrate on his personal business ventures. This step by the firm can also be an indication that the firm may be in the process of getting smaller in size. Whether this is true or not can be ascertained only when a spokesperson agrees to comment on the same.