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World Renowned Trader Louis Bacon Shuts down Hedge Fund

Khully — Mon, 02 Dec 2019 13:28:47 +0000

Louis Bacon, viewed by many as the most successful trader of his generation has closed down his hedge fund, Moore Capital Management.

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”

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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Another Hedge Fund Struggles: Stone Milliner Confirms “Winding Down”

Khully — Mon, 02 Dec 2019 13:26:21 +0000

Macro Hedge Fund, Stone Milliner has confirmed it will be returning capital amid poor performance and client withdrawals.

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.

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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The post Another Hedge Fund Struggles: Stone Milliner Confirms “Winding Down” first appeared on MODELOMNI.