•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

New York-based asset management firm Avenue Capital has confirmed plans to shut down its original hedge fund, Avenue Investments, because of poor performance.

According to CNBC, Avenue Capital will return investors’ money and has already started to sell the fund’s positions. "Avenue has determined to wind down its U.S. hedge fund," a company spokesman said to CNBC, adding that a big majority of Avenue's capital in the distressed investment space is in long-term investment vehicles with lockup provisions ranging in duration from five to seven years. "The longer-term lockup structure represents the principal direction of the firm."

Avenue Investment’s assets have shrunk to just $350m or merely less than 3% of Avenue Capital’s assets ($13.2bn). The fund launched with $7m in July 1997. Reuters reported in May this year that the firm was already planning on closing the fund, which had at the time had $500m in AuM. It had returned 7.3% per year but lost 0.42% in 2014.

In July, Avenue Capital was amongst a group of New York-based hedge funds who lost money from their euro-area bailout positions. The firm is also one of the hedge funds which this summer h......................

To view our full article Click here