NEW YORK, June 19 (Reuters) - Matt Feshbach, one of the most famed short-sellers of the 1980s, is liquidating his latest fund after months of stock losses.
Feshbach said on Thursday he was liquidating Largo, Florida-based MLF Investments, which peaked at more than $200 million in 2006, by distributing holdings in its two remaining stocks to his investors.
“I believe it was in the best interests of my investors to distribute the underlying securities that the fund held,” Feshbach told Reuters in a telephone interview.
Feshbach, 55, said he has no plans to retire, but declined to comment further.
During the 1980s, Feshbach and his two brothers, Kurt and Joe, built up a $1 billion Feshbach Brothers investment fund that specialized in short selling — or betting on stock declines — winning him praise and vilification on Wall Street.
Feshbach Brothers generated rich returns over 30 percent from 1982 to 1990, but later suffered a reversal of fortunes and liquidated in 1992.
In 2001, Matt Feshbach founded MLF Investments with outside investors to focus mostly on long investing in a handful of small-capitalization stocks. The firm prospered for five years, but suffered a reversal of fortunes in 2007.
The firm last week distributed holdings in Ambassadors International AMIE.O, according to a regulatory filing. The cruise ship operator’s stock has declined from about $47 per share in January 2007, to trade at $4.60 on Thursday.
The firm is in the process of distributing shares in its other holding, teen retailer Delias DLIA.O, whose shares have also posted steep declines for the past 18 months. (Reporting by Dane Hamilton, editing by Maureen Bavdek)