Looking back at Carlson's recovery and Wije's Sri Lankan charity

April 12, 2011   Suzy Kenly Waite

AR also revisits Scottwood’s tumultuous 2010.

»» Scottwood Capital Management had rebounded to $750 million by March 2010 after losing two-thirds of its assets in 2008. Founder Edward Perlman was able to capitalize on the credit opportunities created by the crisis, gaining 44.05% in 2009.

But the fund dropped again in 2010, losing 6.44% after its worst month ever curtailed its winning streak. Recently, a co-founder filed a lawsuit against Scottwood for a share of profits earned after his 2007 departure.

Scottwood, which managed $550 million as of February, has yet to respond to the complaint in court. The fund was up 3.57% through February.

»» S.P. "Wije" Wijegoonaratna, a Fortress Investment Group alumnus, who had just launched Galle Global Macro Partners in February 2010, founded Sri Lanka Care in the wake of the 2004 tsunami that devastated Southeast Asia. A native of Sri Lanka, he had some help from his father, an engineer, building houses for his displaced countrymen. "It got to him that we have to help the poorest of the poor," his father told AR. "We are privileged people. And when you have, you must give some away."

Galle Global Macro had a short shelf-life. Wijegoonaratna shut his firm in January 2011 following losses in 2010—the fund reportedly dropped 9.3% from its February 2010 inception through November 2010, according to Bloomberg . In April 2011, he joined Moore Capital Management as a macro portfolio manager.

Five years ago

»» Carlson Capital, which managed $4.7 billion at the end of 2004, faced tough headwinds after lackluster performance in the second half of the year and the loss of several senior portfolio managers and analysts. The departures and poor performance sent investors fleeing. By January 2006 the firm managed $2.7 billion.

Carlson’s assets did not recover until January 2010, when the firm managed $4.8 billion, but Carlson has been expanding quickly since then, having reached $6.1 billion this January, according to the AR Billion Dollar Club . The firm's substantial performance gains, which have doubtless goosed fundraising, earned Carlson nominations in three categories—multistrategy, long-term performance, and management firm of the year—at the sixth annual AR Awards held in December 2010.

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