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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