Who Inspired Hedge Fund Winding Down Business

April 17, 2013 James Heinsman Hedge Fund News

Greenwich, Connecticut-based hedge fund 5:15 Capital Management will be closing shop and returning client money after redemptions. The fund, whose name is taken from a song by the British rock band The Who, focused on government bonds and was launched in July, 2009.

The fund has been struggling lately, falling from a high of $1 billion in assets under management as of the beginning of 2012 down to $370 million this past April 1.

“We did explore restructuring the firm to manage a reduced AUM level,” wrote E.G. Fisher and Rob Wahl, co-founders of the fund, referring to the firm’s assets under management.

“We came to the conclusion that because our trading orientated strategy requires a significant and robust platform to meet our high standards for institutional quality risk management, execution, operational control and regulatory compliance, it is in our investors’ best interest to wind down the fund.”

Over the almost four years of the fund’s existence it returned about 5.5 percent a year, with positive results every year except for this year.

The number of hedge funds closing down increased in the fourth quarter of 2012. During that time 238 funds closed, with a total of 873 shutting down in 2012. That is the highest number of hedge fund closures since 2009, when over 1,000 funds went out of business.

5:15 Capital Management, E.G. Fisher, Rob Wahl,

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