Nevsky Flagship Unlikely To Survive Managers’ Departure

Mar 3 2010 | 1:36pm ET

Nevsky Capital will close its flagship hedge fund after its managers—including a founder of the US$7.5 billion London-based firm—announced plans to step down.

Martin Taylor, Nevsky’s chief investment officer, and Nick Barnes will resign from the firm in March 2011.Nevsky’s flagship fund, which manages US$3.3 billion, will not survive them. The firm told investors that it would likely choose to wind down the vehicle, which has returned 780% since its inception as part of Thames River Capital 10 years ago.

“Given the highly specialized nature of the fund’s mandate and the central role that Martin and Nick fulfill in this regard, neither the manager nor the investment adviser believe they are able to offer the fund alternative management arrangements from within the manager or investment adviser,” the fund’s directors told investors today.

Nevsky’s board is meeting to discuss its options, and could choose to pursue a new management team for the fund, but is expected to pull the plug. The fund is down 3.5% this year after soaring 32% last year.

Taylor and Barnes will continue to manage Nevsky’s long-only Global Emerging Markets fund and a pair of UCITS III-compliant funds until their departure in 12 months’ time.

“Whilst Martin’s and Nick’s enthusiasm for the fund’s strategy remains , neither individual feels able to commit to managing the fund’s portfolio with the intensity that they would wish to continue to provide, beyond March 2011,” Nevsky explained.

Both Taylor and Barnes have been with Nevsky since its spin-off from Thames River three years ago.


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