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

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.