Rubicon Said to Shutter Flagship Hedge Fund After Two Decades

(Bloomberg) -- Rubicon Fund Management plans to shut its flagship hedge fund after two decades, joining a growing list of money managers that are throwing in the towel, according to people with knowledge of the matter.

The firm, one of the oldest hedge funds in London, will close its macro Rubicon Global Fund, said the people, who asked not to be identified as the plans are private. The fund fell 3.3 percent in January, according to a letter to investors seen by Bloomberg. The Financial Times reported the closure earlier.

Rubicon, which was started by Paul Brewer, a former co-head of foreign exchange at Salomon Brothers, will continue to run its Dynamic Fund, the people said.

The $3 trillion hedge fund industry is shrinking, with a number of veterans calling it quits. A slew of hedge funds including John Labanowski’s Brenham Capital Management and Peter Brewer’s Cumulus shut last year. Deepak Gulati’s Argentiere Capital is returning capital to investors from its flagship $940 million hedge fund. Closures outnumbered startups for the third consecutive year, according to Eurekahedge.

Macro hedge funds, which place bets based on the economic and political situation by trading everything from currencies to commodities, are up 2.1 percent on average this year, according to Singapore-based data provider Eurekahedge.

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