Clarium Capital
| Company type | Private |
|---|---|
| Industry | Investment management, Hedge fund |
| Founded | 2002 in San Francisco, United States |
| Founder | Peter Thiel |
| Headquarters | San Francisco , United States |
Area served | Global |
Key people | Peter Thiel (founder) |
| Products | Global macro investment funds, micro-cap equities, fixed income instruments, hedging market strategies |
Number of employees | Employee-owned entity |
Clarium Capital Management LLC was a United States-based investment management and hedge fund company that focused on a global macro investment approach. Established in 2002 in San Francisco by Peter Thiel, known for co-founding PayPal and being an early backer of Facebook, the firm's assets under management reached a high of $8 billion in 2008. However, by 2011, due to unsuccessful investments and client withdrawals, the assets had diminished to approximately $350 million.
Function and history
Operating as an employee-owned entity, Clarium invested across public equity markets—primarily targeting micro-cap equities—along with fixed income instruments and various hedging market strategies. Distinct from the conventional fee structures charging roughly 2% management fees plus 20% performance fees, Clarium implemented no management fee but levied a 25% performance fee.
After a hiatus coinciding with Thiel's involvement at PayPal, Clarium recommenced activities in 2002. The firm moved its headquarters from San Francisco to New York City in 2008 but returned its base to San Francisco by mid-2010. By 2011, the fund’s size had contracted by 90%, and by 2013, it was generally regarded as inactive.
2002
The firm's performance in 2002 was regarded as notable, driven by well-timed investments anticipating a rise in global energy demand that caused an oil shortage. In 2009, the Wall Street Journal characterized this achievement as "impressive."
2008-2010
Between 2008 and 2010, Clarium experienced losses of 4.5% in 2008, followed by declines of 25% and 23% in 2009 and 2010 respectively. Despite delivering a substantial return of 57.9% during the first half of 2008, the assets under management sharply decreased—from $4 billion at the beginning of that year, reaching a peak of $7.8 billion in June 2008, then dropping to $1.5 billion by July 2009 as investors withdrew funds. The primary cause of these losses was large positions taken on the depreciation of the US dollar. By December 2010, AUM had further contracted to $681 million.