Reuters – UK-based Wessex Asset Management is closing three hedge funds, including one that invests in Asia-Pacific, the money manager said in a letter to investors, following a drop in assets under management and double-digit losses in 2011.
The closure lengthens the list of hedge funds shutting down this year as the market turmoil keeps investors on the sidelines, making it tough for managers to raise assets.
Assets of the long/short equity hedge fund Wessex Asia-Pacific Fund, which once managed more than $270 million, had dropped to $11 million. The fund’s net asset value had slumped about 27 percent in 2011 to October, the letter showed.
Its gold hedge fund, which had started trading in 2007 with more than $50 million of committed capital, was down 37 percent this year and the asset had dropped to $3 million.
