Komfie Manalo, Opalesque Asia: Diversified multi-manager and multi-strategy hedge fund Collins Capital has
announced it would shut down its Collins Alternative Solutions Fund, a mutual fund that
offered hedge fund strategies to retail investors, after suffering a
double-digit losses last year and declining further this year.
In a regulatory filing with the U.S. Securities and Exchange Commission,
Collins said that the fund was shuttered on February 19, as reported by
Reuters. The company said, "The board concluded that
it would be in the best interests of the fund and its shareholders that
the fund be closed and liquidated."
The hedge fund, based in Coral Gables, Florida, fell 12.5% in 2015 and
lost 4.2% in January this year.
Industry analysts are predicting more liquidations from mutual funds
that are offering hedge fund strategies.
Morningstar analyst Josh Charlson commented, "We are going to see more
liquidations. If fund firms don't have a robust distribution network to
attract assets and then the suffer a spate of poor performance, they
will suffer."
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