Brummer Liquidates Market Neutral Hedge Fund

Jun 14 2011 | 12:32pm ET

Swedish hedge fund giant Brummer and Partners has closed its market-neutral hedge fund, the second fund at the firm to meet that fate this year.

Brummer said that its European Arbor Market Neutral Fund "had a period of weak return" following a "strong start" at its launch almost three years ago. Brummer has pulled the $260 million its multi-strategy fund had invested in Arbor, liquidated the fund and shut down its management company.

Björn Lind, who managed the fund and headed Arbor Asset Management—Brummer's funds are run by affiliated firms that it owns or co-owns—has resigned, Financial News reports.

According to Brummer, its flagship multi-strategy fund's managers had "doubts regarding Arbor Market Neutral's ability to deliver good, long-term results," despite the fund's 2.86% return this year. Arbor lost 9.7% last year.

The demise of Arbor follows Brummer's decision to shutter its Karakoram Asia stock fund earlier this year. Karakoram, which managed a similar amount of Brummer Multi-Strategy to Arbor, lost 15.4% last year.

Brummer has launched two new hedge funds this year, setting up an event-driven firm in Singapore and seeding a new European event-driven firm founded by a pair of former Goldman Sachs proprietary traders.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.