“Bowman Capital, one of the largest hedge fund groups in the United States, is shutting the $2 billion Bowman Technology fund and returning more than $1 billion in cash to investors,” writes Danny Hakim in today’s New York Times.

“The closing of the fund, which declined 22 percent in 2001 through last Friday, is the latest in a string of setbacks for technology fund managers during this bear market. Bowman Capital of San Mateo, Calif., said the liquidation had been anticipated for weeks and much of the fund was already in cash, so its move should create only modest pressure on technology stocks.”

” ‘We are returning to our roots,’ said Lawrence A. Bowman, the firm’s chief executive, ‘and so we are going more toward a leaner organization that will help us recapture the eye of the tiger and the hunger that our firm had back in 1995.’ “

“Hedge funds are private funds that cater to the wealthy and to institutional investors like college endowments. Last year, technology-focused funds rose to prominence in the industry, but many have struggled this year. Mr. Bowman intends to streamline operations and refocus the firm on investments in small- and medium-size technology companies. The Bowman Technology fund focused on large companies. The firm’s $1.8 billion Founders fund, down 18 percent for the year through last week, focuses on smaller companies.”

“Mr. Bowman, 42, will have to recapture the tiger’s eye without his top partner, John K. Hurley, 37. He is leaving to spend more time with his family, the firm said. People close to the organization have said that the men disagreed over strategy, though Mr. Bowman disputed that suggestion. Each man was once a top technology fund manager at Fidelity Investments, the big mutual fund company in Boston.”

“Bowman Capital will be left with about $3 billion in assets, including a $1.25 billion venture capital portfolio. The world’s largest hedge fund group, Pequot Capital of Westport, Conn., is believed to have about $15 billion in assets, though its top partners are in the process of splitting the firm. Some of Bowman’s top holdings at the end of March included Microsoft, Sonus Networks and Qualcomm, according to recent regulatory filings. Such disclosures often represent a hedge fund group’s holdings for only a brief moment.”

“The Bowman Technology fund declined 20.2 percent in the first four months of the year, a performance that compared favorably with the 21.8 percent decline of the average technology mutual fund in that period. But hedge funds charge high fees because they are expected to do well in bear markets. Such funds often sell some stocks short, a bet that they will decline in value, to provide some insurance if the market declines.”