Hedge-Fund Closures Hit $3 Trillion Market as Veterans Surrender

(Bloomberg) -- Philippe Jabre’s decision to return capital from three of his hedge funds rocked the industry this week. But closures have been a key theme of 2018.

The number of funds in the $3 trillion market is shrinking as veterans who survived several business cycles throw in the towel. Money-making opportunities have dwindled with the downturn in stocks, while higher barriers to entry from regulation make it harder for new blood to come in.

Closures have outnumbered launches for the third year running: 580 funds decided to shut as of Dec. 3, compared with 552 openings, according to Eurekahedge. Here are some that closed or turned into family offices:

Firm/FundPortfolio Managers
Abberton CapitalFredrik Juntti
AlphaGen ElnathMark Gordon
Astellon Capital PartnersBernd Ondruch
Atlas Fundamental Trading (Balyasny)Dmitry Balyasny
Bernina SystematicLev Mikheev
Blockhouse Capital ManagementJack Franke, Eric Lee
BP CapitalT. Boone Pickens
Brenham Capital ManagementJohn Labanowski
Cascade Ridge CapitalYunhee Yoo
Chieftain Capital ManagementJohn Shapiro, Thomas Stern
CumulusPeter Brewer
Goldman Sachs *Ryan Thall, Hideki Kinuhata
Highfields Capital ManagementJon Jacobson
Ivaldi CapitalWill Potts
Jabre Capital PartnersPhilippe Jabre
KAM Portfolio ManagementKarim Abdel-Motaal
Man Group #Himanshu Gulati, Simon Pickard
Macquarie Asian Alpha Nick Bird
New Peak Capital PartnersMassimo Bertoli
Nezu Japan Fund
Och-Ziff $
Omega AdvisorsLeon Cooperman
Paulson & Co. ^John Paulson
Pelorus Jack CapitalTim Garry
Pennant Capital ManagementAlan Fournier
Prediction Company (Millennium)Doyne Farmer, Norm Packard
QVT FinancialDan Gold, Nicholas Brumm, Arthur Chu and Tracy Fu
River Birch CapitalBart McDade, Alex Kirk
Sealight Capital
Soroban Capital’s Master FundEric Mandelblatt
SPO Partners & Co.Eli Weinberg
Tamarisk Fund (Red Kite)Tim Jones
Three Bays CapitalMatthew Sidman
Tourbillon Global Master FundJason Karp
Truston Falcon Asia Fund
Verrazzano CapitalGuillaume Rambourg
Vilk Commodity ServicesThomas Hodge, Giles Hill

* Shut two hedge funds run by senior executives based in Asia
$ Shut Asian and European hedge funds 
# Closed distressed credit money pool of Gulati, who left to start his own fund; GLG’s Unconstrained Emerging Equity fund run by Pickard also closed
^ John Paulson’s gold and special-situations hedge funds returned capital

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