Louis Bacon to Shutter Hedge Fund Moore Capital
High-profile managers continue the trend of returning capital to investors
Louis Bacon will close his New York hedge fund Moore Capital and return money to investors. The Financial Times first reported the story on Thursday morning. The decision comes after three decades of tepid performance by the money managers’ hedge funds.
The FT report indicates that Moore’s macro hedge funds saw years of outflows as well. The firm’s AUM dipped over the last 10 years to roughly $8.9 billion at the end of 2018.
Louis Bacon is the Latest Hedge Fund Manager to Walk Away
Louis Bacon joins a number of prominent managers to return capital to investors in recent years. The FT notes the decisions by Leon Cooperman and Michael Platt to return capital to outside investors. Steven Cohen also returned capital and converted to a family office strategy with Point72 Asset Management.
These decisions come at a challenging time for hedge funds. Investor pressure over management fees combined with increased regulatory scrutiny is weighing on managers.
Prior to his decision, Bacon had recommended that investors follow Joeri Jacobs, one of Moore Capital’s top-performing managers to a new fund. However, the FT doesn’t know the results of this pitch and if Jacobs has raised capital. Before returning the money, Bacon can step back and look at all that his fund has accomplished. Through 2018, Moore Capital generated $18.3 billion in returns for investors. LCH Investments’ data notes that Moore Capital is the 15th most profitable hedge fund in sector history.
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