Highfields Capital Management
| Company type | Limited Partnership |
|---|---|
| Industry | Hedge fund |
| Founded | 1998 in Boston, United States |
| Founders | Richard Grubman, Jonathon Jacobson |
| Headquarters | Boston , United States |
| Products | Investment management, hedge fund services |
Highfields Capital Management LP is a hedge fund established in 1998, with assets under management totaling $12.1 billion as of 2018. Over its initial two decades, the firm delivered annualized net returns surpassing 10%.
Business
Richard Grubman and Jonathon Jacobson, who first connected in the early 1990s, founded Highfields Capital Management LP in Boston in 1998.
The firm’s portfolio included investments in publicly traded stocks and private enterprises such as Harry & David, Michaels, Genworth Financial, Microsoft, and SLM Corporation. Additionally, Highfields participated in reinsurance sidecar ventures. A notable achievement was the profitable short position taken against Enron prior to its collapse in 2001. In 2012, Highfields advocated for leadership changes at CoreLogic, where it owned a 7.65% equity stake.
By January 2010, the firm managed $10 billion in assets, earning the 30th spot on The Hedge Fund Journal’s Top 50 list; this was an increase from $9.3 billion six months earlier and an improvement from its 38th ranking in 2008.
In 2013, Highfields returned $2 billion to investors to concentrate on enhancing returns through a more focused asset base.
In October 2018, the company declared it would return all external capital and convert into a family office. Jacobson attributed this decision to the demanding nature of managing outside funds after over thirty-five years in the industry.
Throughout the period from 1998 to 2018, Highfields experienced losses only during 2002 and 2008.
Senior management
Highfields Capital Management LP was co-founded by Richard Grubman and Jonathon Jacobson in 1998.
Grubman retired in August 2010, while Jacobson continues to serve as a key leader of the firm.
Jacobson earned his undergraduate degree in finance from the Wharton School and holds an MBA from Harvard Business School. His professional background includes roles as an options trader and positions at Merrill Lynch and Lehman Brothers before joining Harvard Management Company (HMC) in 1990. He departed HMC in 1998 to co-found Highfields, with approximately one-third of the initial $1.5 billion in assets under management sourced from HMC. According to a 2011 Bloomberg report, Harvard Management Company ceased investing with Highfields thereafter.