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

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.

 

May 15, 2024
NFA Issues Order Against 50.ai Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against 50.ai Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.