Cannell Capital was founded by Carlo Cannell in 1992 with an initial out-of-pocket investment of just $600,000. The San Francisco, CA based fund is an employee-owned long/short market neutral equity hedge fund. The firm primarily invests in stocks of domestic small-cap companies by using a value-oriented, bottom-up, market neutral approach to make its investments. In 2004, when funds under management had grown to $765 million, the fund returned 15% of the capital to its investors. Mr. Cannell’s logic was simple yet incisive, citing that the mortality rate of hedge funds with an AUM of $1 billion or more was high and that he would rather “practice prudence over greed.”
Recently, Carlo has become an activist investor by taking on Jim Cramer and The Street.com by demanding a pay cut for Mr. Cramer or a sale of the company.