Two More Hedge Funds Bite the Dust
Hedge fund closures are getting worse.
Hedge fund closures are hitting Switzerland. The quantitative hedge fund Amplitude Capital AG is returning money after heavy losses over the last couple of years led to substantial withdrawals from the fund. Poor investor interest led to the closure of hedge fund Sator Square Capital Management.
Tough operating conditions drive hedge fund closures
Rising operating costs, difficult capital market conditions and investors’ disillusionment with their high fees structure have led to hedge funds shutting shop.
Data from Eurekahedge and Hedge Fund Research Inc. shows that over the last three years more hedge funds have closed than started.
Entrepreneurs and would-be hedge fund managers are also avoiding the industry. The same data showed that in 2018 the number of hedge fund start-ups were the lowest in 18 years.
What’s interesting is that the downtrend continues even though data from Hedge Fund Research shows hedge funds generated returns of over 7% on average during the first four months of 2019. This was the industry’s best showing since 2006 for that period.
Amplitude Capital & Sator Square
Assets under management at Amplitude fell to $860 million end-March from a level of $1.75 billion not so long ago. However, two years of losses triggered the redemption.
Finally, Sator Square Capital Management, run by Manuel Blanco, decided to close after raising only $20 million. Manuel Blanco is not a newcomer to the industry. He managed money for funds such as Highbridge Capital Management and Balyasny Asset Management.
Latest Alternative Investment News
Accelerate Financial Technologies launched its OneChoice Alternative Model Portfolio in September. Aimed at hard-pressed advisors and portfolio managers, the strategy offered a quick and easy way to put together a…
SBI Group (TYO: 8473) is launching a crypto lending service through SBI VC Trade, its crypto-focused exchange subsidiary. SBI said it will initially allow customers to tender only bitcoin (BTC),…
Hippo, the home insurance unicorn, announced Tuesday an investment of $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc. In July, Hippo raised…
Based in Luxembourg, Astanor Ventures combines capital, technology, and sector expertise to invest in businesses that build regenerative, scalable, and nourishing food solutions. Using this philosophy, Astanor has invested in…