Arrowgrass Capital Partners Will Shut Down

September 14, 2019 | Fund Updates, Hedge Funds, News

Blame the Fed, Blame the ECB, Blame All-Around 

Arrowgrass Capital Partners is shuttering its doors after 11 years.

The hedge fund – founded by Deutsche Bank AG traders – blamed central banking policies around the globe for its closure. Investors have been rushing to redeem capital over the last two years.

A letter viewed by Bloomberg indicated that the firm will return capital after its assets fell by 50% from the $6.4 billion it held in 2017. In addition to lackluster returns, the company also faced a legal battle after a senior executive’s departure become public in August.

Arrowgrass Capital Blames QE Policies

According to Arrowgrass Capital Partners co-founder Nick Neill, the company struggled due to the decade-long policies of global central banks.

“Ten years into the current cycle, as we observe global central banks initiating a new round of quantitative easing, we cannot with any reasonable conviction identify a near-term catalyst that would signal the end of the current cycle,” Niell wrote in the letter. The company’s master fund experienced a 2.5% decline in performance through August 23, according to Bloomberg.

Returns also swirled in the low-single digits since 2016.

Eurekahedge says that hedge funds were up 6.4% over the first eight months of the year, by comparison.

Neill founded the firm in 2008 with Henry Kenner, who is also the chairman of TruFin.  That financial services firm also falls under the banner of Arrowgrass.

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