Hedge-Fund Closures Hit $3 Trillion Market as Veterans Surrender
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/Fund | Portfolio Managers |
---|---|
Abberton Capital | Fredrik Juntti |
AlphaGen Elnath | Mark Gordon |
Astellon Capital Partners | Bernd Ondruch |
Atlas Fundamental Trading (Balyasny) | Dmitry Balyasny |
Bernina Systematic | Lev Mikheev |
Blockhouse Capital Management | Jack Franke, Eric Lee |
BP Capital | T. Boone Pickens |
Brenham Capital Management | John Labanowski |
Cascade Ridge Capital | Yunhee Yoo |
Chieftain Capital Management | John Shapiro, Thomas Stern |
Cumulus | Peter Brewer |
Goldman Sachs * | Ryan Thall, Hideki Kinuhata |
Highfields Capital Management | Jon Jacobson |
Ivaldi Capital | Will Potts |
Jabre Capital Partners | Philippe Jabre |
KAM Portfolio Management | Karim Abdel-Motaal |
Man Group # | Himanshu Gulati, Simon Pickard |
Macquarie Asian Alpha | Nick Bird |
New Peak Capital Partners | Massimo Bertoli |
Nezu Japan Fund | |
Och-Ziff $ | |
Omega Advisors | Leon Cooperman |
Paulson & Co. ^ | John Paulson |
Pelorus Jack Capital | Tim Garry |
Pennant Capital Management | Alan Fournier |
Prediction Company (Millennium) | Doyne Farmer, Norm Packard |
QVT Financial | Dan Gold, Nicholas Brumm, Arthur Chu and Tracy Fu |
River Birch Capital | Bart McDade, Alex Kirk |
Sealight Capital | |
Soroban Capital’s Master Fund | Eric Mandelblatt |
SPO Partners & Co. | Eli Weinberg |
Tamarisk Fund (Red Kite) | Tim Jones |
Three Bays Capital | Matthew Sidman |
Tourbillon Global Master Fund | Jason Karp |
Truston Falcon Asia Fund | |
Verrazzano Capital | Guillaume Rambourg |
Vilk Commodity Services | Thomas 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
To contact the reporters on this story: Nishant Kumar in London at nkumar173@bloomberg.net;Suzy Waite in London at swaite8@bloomberg.net
To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Paul Armstrong, Keith Campbell
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