Whitney Closes Brokerage, To Launch Hedge Fund Oct 10 2013 | 8:59am ET Star analyst Meredith Whitney is switching sides. Whitney, who came to fame in 2007 when she predicted trouble for Citigroup, has closed her brokerage and is planning a hedge fund. Whitney's Kenbelle Capital registered in New York in April and is based in Bermuda. Kenbelle is a long/short fund, with Whitney serving as chief investment officer and managing principal, according to regulatory filings. The move has been some time in coming: Whitney was interviewing potential fund executives earlier this year. And Meredith Whitney Advisory Group has lost money every year since its debut in 2009 and had lost some prominent customers, among them Elliott Management, Paulson & Co. and Balyasny Asset Management. All told, more than half of the firm's clients jumped ship, forcing it to slash staff. It's last investment staffer other than Whitney, Angela Cantu, recently left the firm for the Blackstone Group. MWAG deregistered with the Financial Industry Regulatory Authority on Aug. 28 and hasnât published its weekly research report since Sept. 19.
It sounds like a lack of focus or ignoring the old saying about "don't believe all your press clips." First the advisory group, then research, I read that she established a broker/dealer, and now a hedge fund. Edit: And she wrote a book "Fate of the States" that was released in June 2013.
She may well end up as a one hit wonder. She presents very well but her muni predictions ignored the fact that estimating how much longer the rot can hold together is very difficult. She put one year time frames on collapses that may take 10 years to unfold. There are numerous weak spots but you still need the catalyst for things to break loose. It is surprising but she does not seem to get that.