Cornwall Capital
 | |
| Company type | Private company |
|---|---|
| Industry | Investment |
| Founded | 2003 |
| Founder | Jamie Mai |
| Headquarters | , |
Area served | Global |
Key people | Ben Hockett, Partner JC de Swaan, Partner Ian Haft, Partner |
| Website | cornwallcapital |
Cornwall Capital is a private investment firm headquartered in New York City, noted for its early recognition and successful short-selling during the 2007 subprime mortgage crisis, a story prominently featured in Michael Lewis's The Big Short.
The firm focuses on investments with significant asymmetry, where the upside potential greatly surpasses the associated risks, utilizing approaches that exploit market inefficiencies alongside thematic fundamental strategies. Between 2003 and 2012, Cornwall delivered an average compounded net annual return of 40%, with gross returns reaching 52%.
History
Established in 2003 by Jamie Mai as a family office to diversify assets from his father, Vincent Mai—who leads private equity firm AEA Investors—Cornwall initially had Mai serving as president and chief investment officer. Shortly thereafter, Charlie Ledley joined the team, followed by Ben Hockett in 2005 as head trader, contributing his expertise in capital markets, derivatives, and fixed income trading.
Cornwall was one of the few firms to foresee and capitalize on the collapse of the subprime mortgage market, earning returns amounting to 80 times their original capital. The trio of Ledley, Mai, and Hockett were depicted under fictionalized identities in the cinematic adaptation of The Big Short.
Ledley left Cornwall in 2009 to join a hedge fund based in Boston. Hockett continues to serve as head trader and chief risk officer. Other partners include JC de Swaan and Ian Haft. Starting in 2011, Mai began allowing select external investors to participate in the fund.
Mai’s investment philosophy was profiled in Jack D. Schwager’s Hedge Fund Market Wizards (2012).
In 2013, Cornwall became the largest shareholder of American Pacific Corporation, a NASDAQ-listed chemical manufacturer, acquiring close to 15% of its outstanding shares. To avoid a proxy battle, American Pacific agreed to appoint Ian Haft to its board. The company was subsequently acquired by H.I.G. Capital in January 2014.
External links
- Cornwall Capital official website
- All geek to them: A handful of outsiders come out of the crisis in credit, The Economist, Mar 18, 2010