- The hedge fund legend Louis Bacon is planning to close Moore Capital Management to outside investors, according to the Financial Times.
- The closing comes on the back of years of weakening performance and investors pulling capital from the firm’s global macro funds, the Financial Times reported.
- Several other large firms have either wound down funds or closed their doors to outside capital this year, including David Tepper’s Appaloosa Management and BlueMountain.
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The billionaire investment manager Louis Bacon is planning to shut his flagship Moore Capital hedge fund to outside investors, according to the Financial Times.
Moore’s closing comes after years of meager returns and investors withdrawing capital from the firm’s global macro funds, the Financial Times reported. The firm’s assets under management have dwindled over the past 10 years to $8.9 billion as of the end of 2018, according to the Financial Times.
One of Moore’s funds overseen by Bacon fell almost 6% last year, while another fund led by a team of portfolio managers slid 3.3%, the Financial Times found.
According to an investor letter seen by the CNBC reporter Leslie Picker, most of the outside capital should be returned in the first quarter of next year. Moore also cited the increasing competition for trading talent and high pressure on fees as contributing to the decision to close the fund.
The firm’s three flagship funds will include Bacon’s own money in addition to capital from principals at Moore, Picker reported.
Before making the call to close Moore to outside capital, Bacon was trying to sell new investors on a fund managed by Joeri Jacobs, a top-tier trader at the firm, the FT reported.
Bacon, who ran Moore for about 30 years, is widely regarded in the investing world for reaping massive gains in the 1990s by placing bets on the Japanese and European markets. LCH Investments listed Moore as the 15th-most-profitable hedge fund of all time, making $18.3 billion for its investors since inception through last year.