Hedge fund closures have outpaced fund launches since 2015

Macro hedge fund Stone Milliner Asset Management is closing its doors. The company announced it would return capital to investors in the face of weak performance and ongoing outflows. Bloomberg reported that the firm had about $3 billion under management in October. That figure is down roughly 50% from its peak.

The London-based hedge fund is among several large firms that are walking away from the hedge fund game. eVestment has said that investors have pulled nearly $88 billion from funds so far this year. That figure is roughly double the outflows for all of 2018.

Stone Milliner and Its Exit

Former Moore Capital traders Kornelius Klobucar, Chris Nicoll, and Jens-Peter Stein founded Stone Milliner in 2012. The company saw early success, with annual returns of 11.5% through 2015. However, it lost money in 2017 and has should lackluster returns in the last two years.

It returned 1.2% in 2018, and has returned roughly 1% so far this year, according to Bloomberg.

Louis Bacon’s Moore Capital had invested about $800 million at its launch and assisted with office support. That said, Moore Capital also announced plans to return capital to investors as Louis Bacon plans to exit the industry.

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