BlueCrest To Close Flagship Fund At US$10 Billion

Jan 29 2010 | 10:41am ET

In another sign that things are returning to normal in the hedge fund industry, an increasing number of successful firms are closing their best funds to new investors.

The latest to make such a move is BlueCrest Capital Management, which will close its systematic quantitative BlueTrend fund at US$10 billion, Financial News reports. The fund currently manages US$9 billion of the London-based firm’s US$17.2 billion.

BlueCrest is the second top hedge fund to tell investors it will close a fund this week. Former GLG Partners star trader Philippe Jabre announced that he would close his Jabre Capital’s flagship Multi Strategy fund at US$2.5 billion.

The increase in recent closings—over the past three years, the proportion of hedge funds closed to new investment dropped to 13% from 17%, according to the Credit Suisse Tremont Index—is a sign that investors are beginning to pour assets back into the hedge fund industry, especially into those funds that have done well amidst the recent market crises. Many top funds reopened for the first time in years during the recession to replace billions in assets lost to redemptions and poor performance.

The BlueTrend fund soared 43% in 2008, a year in which the average hedge fund sank by double-digits. Last year, it posted a much more modest return of 4.3%.

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