Finance: John Burbank's Passport Capital, which famously shorted the subprime mortgage crisis, is rapidly shrinking

John Burbank's Passport Capital has been hit with another round of outflows.

John Burbank's Passport Capital is shrinking.

The firm is managing just $900 million, about half of what it did at the start of the year.

In an investor letter dated July 31, the firm told clients:

"For the second quarter, the Fund had net outflows of $480 million. Firm-wide, net outflows (not including the Long Short hedge fund strategy liquidation, effective 4/30/2017) totaled approximately $565 million. At quarter-end, net of June 30th redemptions, Fund assets stood at $275 million and Firm assets totaled approximately $900 million."

Earlier this year, Passport shuttered its long-short fund, which managed about $833 million.

Passport, in hedge fund assets, managed about $2.1 billion firmwide at the start of the year, according to the HFI Billion Dollar Club ranking.

The firm had already been bleeding assets, as that start-of-the-year figure was 45% lower than at the start of 2015, per HFI. A spokesperson did not immediately return calls seeking comment in time for publication.

Burbank famously shorted the subprime mortgage crisis. Investors in Passport's flagship fund, the Passport Global Strategy, got a 219% payout in 2007, according to a Forbes report from the time.

The Passport Global fund is down 16.8% after fees for the one year trailing to end of July 2017.

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