Hedge Funds Bleed Out, More Closures
Posted on 10/04/2018
Boston-based Highfields Capital Management, which managed money for large clients like Harvard Management Company, is shutting down after a period of “low” returns. The hedge fund will convert into a family office, returning approximately US$ 10 billion to clients. Financial turbulence has negatively impacted hedge funds.
Jonathon Jacobson co-founded the hedge fund with Richard Grubman who exited Highfields Capital in 2010. Jacobson is a former Senior Equity Portfolio Manager at Harvard’s endowment, years 1990 to 1998.
Criterion Capital Management
San Francisco-based Criterion Capital Management is shutting down after 16 years in business. The hedge fund focused on technology, media, and telecommunication stocks. Criterion Capital had roughly US$ 2 billion in assets.
Chicago-based Balyasny Asset Management is closing down its Atlas Fundamental Trading Fund after poor performance in 2018. This fund was created by Dmitry Balyasny during the global financial crisis to trade on his “best ideas.” Net assets stood at US$ 308 million in December 2017.
In 2017, Eton Park, a hedge fund run by Eric Mindich, shuttered.
Large Private Allocators Shutter Units
BNY Mellon moved to close EACM Advisors, a hedge fund-of-funds business that oversaw US$ 3.9 billion in long-only and hedge funds-of-funds strategies.
In September 2018, Amundi, the largest asset manager in Europe, revealed it would no longer allocate to hedge funds, instead turn to mutual funds and other alternative investments. Amundi shuttered its London team of hedge fund allocators and researchers.
Keywords: Bank of New York Mellon.
