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Komfie Manalo, Opalesque Asia:

Distressed debt hedge fund Magnolia Road Capital is shutting down operations after failing to raise capital. In a letter to investors, Jame Donath said he would return the bulk of their capital before the end of this year, reports Reuters.

The New York-based hedge fund was established in 2013 with nearly $45m in capital. The fund has more than doubled its assets to its current size of $100m but was not able to make profit on future trading opportunities, Donath said in his letter.

Magnolia's closure reflects the industry trend where more funds have shot down than opened in the first three months of 2017.

Hedge fund closures

Anthony Ward, also known as "Chocfinger" closed his CC+ hedge fund that had invested in cocoa and coffee markets, blaming the rise of computer-driven funds and high-frequency trading for forcing him and some other well-known commodities investors to close their hedge funds and look for opportunities where machines can't make a difference.

Two other commodity hedge funds closed in January and late last year. Stephen Jamison threw in the towel in his Jamison Capital Partners last month while Andrew Hall shuttered his main Astenbeck ......................

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