Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was
closing four hedge funds with a combined $ 1 billion in assets and start
returning investors money over the next several months, various media
said. The hedge funds represent 15% of Black River’s total assets.
James Gruver, a spokesman for Black River said Thursday that the four
hedge funds to be liquidated are invested in equities, emerging markets,
commodities, as well as a fund that focuses on Europe, Middle East and
Africa and are run by Gary Jarrett, Bloomberg reported.
Gruver stated, "It’s always a difficult decision to close funds." He
added that Black River’s $1.8 billion Fixed Income Relative Value
Opportunity Fund, the largest hedge fund in its roster, will continue to
operate, as well as the firm’s $500 million emerging markets credit
strategies. Gruver said that Black River’s $2 billion private equity
group would not be affected by the closure.
The liquidation of Black River’s hedge funds follows a series of recent
closures within the hedge fund industry. Armajaro Asset Management
recently announced its decision to shutdown its
$450 million commodities fund after losing its lead manager and
suffering losses. Fortress Investment also said it was shutting down its
macro hedge fund.
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