New York (HedgeCo.net) – In what is becoming somewhat of a trend, a major firm is shutting down one of their hedge funds due to poor performance. Bloomberg reported yesterday that Bain Capital is shutting down its Absolute Return Capital fund due to losses in each of the last three calendar years and the losses that were mounting this year. According to the article, the fund was down approximately 13 percent so far in 2015 and that will go down as the worst year for the fund since its inception in 2004.
The fund held approximately $2.2 billion in AUM at the beginning of August, of which $552 million was Bain’s own money. The article from Bloomberg contained an excerpt from the letter that was sent to investors.
“As you know, the environment for global macro fundamentals-based trading continues to be challenging. That factor, combined with the lack of certainty over when a recovery will take hold, led us to conclude that the time was right to return capital to you.”
This year has been a difficult year for macro funds and commodities based funds in particular and a number of firms have announced the shutdown of these style of funds.