Chicago Tribune- In a sign of continuing woes for hedge funds that use computer models to trade, GMN Capital has decided to close down and will return its investment capital, the fund’s chiefexecutive said.
James Claus, who also is a managing partner, confirmed the decision late Wednesday, saying the San Francisco-based hedge fund firm would shut down at the end of the year. Claus said the firm sent aletter to investors earlier this month saying it plans to return their money.
Assets in the firm’s single fund, GMN Master Fund, dropped to about $500 million from a high of $1.2 billion, said Claus, whose firm is among the many hedge funds that use complex computer models to make trades. GMN Capital was a spinoff of London’s GSA Capital, launching this year with about $1 billion in assets. It ran into trouble in August, when stocks started moving in ways that models didn’t predict.
