January 28, 2023

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Center Lake Is Down Its Top Two Analysts After a Rough First Quarter

  • Adam Parker’s Center Lake Capital has lost its top two analysts over the last month.
  • The firm’s main hedge fund is down roughly 2{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} for the year after a big 2020.
  • The $650 million fund’s investment team is now Parker and one other analyst.
  • See more stories on Insider’s business page.

Adam Parker’s high-flying fund has hit a patch of turbulence.

Center Lake Capital, a New York-based firm running more than $650 million, has lost its top two analysts in the last month. The two analysts, Anjelo Austria and Andrew Morton, joined the fund in 2018 and 2019, respectively.

The firm’s investment team now consists of just Parker and senior analyst Matthew Greenberg, who joined in January after a four-year stint at now-closed hedge fund Valinor Management. 

Center Lake declined to comment, and Austria and Morton did not respond to requests for comment.

The departures come at the end of a rough three months for Parker, who was named to Business Insider’s 2019 rising stars of Wall Street list. His flagship fund, which returned more than 41{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} last year, fell by 9.3{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} in the first quarter thanks to an 8.9{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} drop in March alone, according to a fact sheet. The firm’s new long-only fund was down roughly 17{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} for the first quarter, sources tell Insider.

The average fund, according to Hedge Fund Research, was up more than 6{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} through the first quarter.

Already though, Parker — who worked for legendary investor Stanley Druckenmiller’s Duquesne Capital and spin-off fund PointState Capital — has started to recover his losses.

The flagship fund is now only down 2{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} through mid-April for the year while the firm’s long-only fund is down roughly 4{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} through the same timeframe. A source familiar with the firm tells Insider that both funds had inflows in March. 

This source also tells Insider that the firm is looking to hire a senior analyst. Parker’s strategy focuses on making bets on tech and software stocks.