Former Oakmark Manager Sanborn to Start Hedge Fund
But if you can't spare $5 million to get in, forget it.
Sanborn says he will launch a hedge fund this spring, but it's unlikely that many of his former Oakmark Fund shareholders will follow him. The fund's $5 million minimum investment will put it beyond the reach of most folks, and even some well-heeled Oakmark investors may balk at the fund's strategy, which allows Sanborn to short stocks equal to 30% of assets. Still, this higher-risk approach also carries with it the potential for outsize gains: Sanborn says an account he ran using this strategy returned 85% during the fourth quarter of 2000, thanks in part to some shorts of formerly high-flying Internet stocks like Yahoo (YHOO).
Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.