Many were shut down due to rising costs and underperformance. The few which survived were barely afloat or returning capital to investors. As a result, for the fifth straight year, there will be more closures than launches. More than 4,000 funds have been liquidated in the past five years, according to data compiled by Hedge Fund Research Inc.

This is not something that has affected new hedge funds. Legendary trader Louis Bacon announced his retreat into a family office and would return capital to investors. A combination of the longest running bull market in history, investor demanding performance or the inability to raise cash to stay in the game has caused a decline in hedge funds.

Investors have yanked $81.5 Bio this year through November, double the amount in the whole of 2018 according to eVestment data. Investors are looking to invest elsewhere due to high fees and mediocre return. As for returns, there’s little to cheer there. While the S&P 500 delivered a 28% gain this year through November, the Bloomberg Equity Hedge Fund Index only managed 10%.

Here are some of the biggest firms to shut their doors to outside investment in 2019:

• Appaloosa Management
• Moore Capital
• BlueMountain’s flagship and Quant funds
• Arrowgrass
• Vinik Asset Management
• Amplitude

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It was not far into the past that Moore Capital was managing $14 Bio however towards the end of 2018, this was below $9 Bio.

In a letter to his investors which was seen by CNBC Reporter Leslie Picker, Moore Capital will be returning majority of client money from its core funds by Q1: Remington Investment Strategies, Moore Global Investments and Moore Macro Advisors. Moore also mentions the “intense competition” for trading talent and a challenging business model due to client pressure.

One of Moore’s funds fell almost 6% last year, followed by another fund dropping 3.3% according to the Financial Times. The letter states “disappointing results of these funds of the last few years”

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A decision which points to the difficulty traders are facing trying to make hedge fund strategies work.

This is not the first high profile retreat this year. In May 2019, David Tepper announced his decision to turn his hedge fund, Appaloosa Management into a family office. Reuters mention “lackluster returns” combined with “lofty fees” by hedge funds are forcing investors to reconsider.

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Firm was founded with $800 Mio from Moore Capital fund which has been recently closed along with news that Louis Bacon would be quitting trading.

The firm, founded by former Moore Capital traders Jens-Peter Stein, Kornelius Klobucar and Chris Nicoll, oversaw $3 Bio at the end of October, according to Bloomberg. This is down from $6 Bio at its peak.

“We can confirm that Stone Milliner is conducting an orderly winding down, the firm is returning all capital/assets to investors by December,” a spokesperson for the firm commented.

This is not the first story to break this story. Stone Milliner is one of many hedge funds retreating into family offices or forced to shutter. Years and years of losses joint with high fees have clients withdrawing funds. Data compiled by eVestment shows that $87.9 Bio has been yanked from hedge funds this year; twice as much as in all of 2018 according to Bloomberg.

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Furthermore, since 2015, there have been more closures of hedge funds than launches with indicators pointing to increasing competition and struggle to find returns.

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No emotions. Relentless 24 hours per day self-learning and self-correcting Supervised Machine Learning, Unsupervised Machine Learning, Deep Learning Neural Networks algorithms, 100% focused on performing one single task efficiently: Trade under strict conditions and with Risk Management at its core.

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