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Komfie Manalo, Opalesque Asia: Jason Capello’s Merchants’ Gate Capital is closing its doors before the end of the year and told investors it would return 90% of their money by January 31, 2015, according to a report by Bloomberg.
Capello told his investors in a letter, "This was a very difficult decision for me, and one that I have not undertaken lightly. After almost 20 years in the financial services industry, two-thirds of that as an investment manager, I am ready to take a break, focus on my young family and take time to figure out the next chapter."
During its peak in 2012, Merchants’ assets reached $2.3bn. But its assets fell to $1.1bn in November this year even as is main fund posted a 6.7% gains. Merchants’ Gate specialized in bets on and against stocks in the energy, transportation, retail, and business services industries.
This year saw the highest number of hedge fund closures since 2009. More than by 400 shut downs were recorded in the first half of this year alone at a rate not seen since the height of the global financial crisis.
At least 461 hedge funds closed shop between January and June this year. Industry experts said that if the trend continues, 2014 would be recorded as one of the worst years in hedge funds h...................... To view our full article Click here
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