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%.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...