Hedge Funds Close As Managers Suffer Continued Bad Performance Since 2009

Posted on December 23rd, 2014 at 9:06 AM
Hedge Funds Close As Managers Suffer Continued Bad Performance Since 2009

From the Desk of Jim Eccleston at Eccleston Law Offices:

With a disappointing average return of 2%, hedge funds are shutting their door at the highest rate since the 2009 financial crisis

In the first half of 2014, 461 hedge funds closed. The $37 billion Brevan Howard Asset Management LLP is the latest casualty.

Many of the closures have been among smaller funds and macro funds. Smaller funds have struggled to grow as institutional investors flocked to the biggest players. Macro funds have suffered due to poor performance, earning less than 1 percent average return this year, in an environment of low interest rates and muted swings in prices.

For instance, Josh Berkowitz’s Woodbine Capital Advisors LP shut down after assets dwindled to $400 million from a peak of $3 billion four years ago. Keith Anderson’s Anderson Global Macro LLC and Kingsguard Advisors LP, started by two former Goldman Sachs Group Inc. traders, both closed after less than three years in business.

In addition, other managers struggled to regain after years of losses or underperformance compared to their benchmark. For example, Perella Weinberg Xerion Fund, focused on distressed credit and special situations, shut down after failing to recoup a 21 percent loss dating from 2011. Long-short equity funds, which have underperformed the bull market in stocks, are predicted to have several closures in the near future.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services. 

Related Attorneys: James J. Eccleston

Tags: Brevan Howard Asset Management LLP, Hedge Funds Eccleston Law Offices, James Eccleston, Hedge Funds

Return to Archive

TESTIMONIALS

Previous
Next

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

April 25, 2024
B. Riley Financial Clears Air Amid Allegations, Stock Surges

Amidst swirling speculation regarding its connections with a client linked to the Prophecy Asset Management collapse, B. Riley Financial Inc. has conducted an internal
review, concluding no affiliations with the defunct hedge fund.

April 24, 2024
RIA Insurance Claims Skyrocket

A recent analysis by Golsan Scruggs reveals a staggering 231 percent increase in errors-and-omissions (E&O) liability claims among registered investment advisor (RIA)
insurers.

April 23, 2024
Surge Predicted in Regulation Best Interest Cases

According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.