Cevian, Up Almost 30%, Mulls Closing Largest Fund

Nov 8 2010 | 11:00am ET

Activist hedge fund Cevian Capital may stop accepting new investors as it seeks to avoid exceeding its strategy's capacity.

Senior Partner Harlan Zimmerman said the €3.5 billion firm might close its largest fund, Cevian Capital II, to new investors next year. At the very least, it seems probable Cevian will require new investors to accept a three-year lockup.

"If things play out as we expect, it is probable that we will close the fund to new capital in the first half of 2011," Zimmerman told Reuters. "We like to maintain a tight focus on about eight to 12 companies at a time. That means we need to be thoughtful about how and when we take in capital."

Cevian II currently manages about €3 billion. The fund returned 35.7% last year and is up 29.8% this year after returning 1.8% in October.

In addition to closing the fund to new clients, Cevian may block all inflows to its one- and two-year lockup share classes. Current investors would then have to put new money into its three- or five-year lockup share classes.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.