Arrowgrass Prepared To Pull Plug On Stock Fund

Sep 22 2011 | 2:03am ET

Arrowgrass Capital Partners may shut its equity hedge fund as poor performance and investor redemptions have cost the vehicle more than 90% of its assets.

The two-year-old stock fund is on the ropes due to a difficult 2011; it is down 14.5% this year after losing 8.65% last month. But even more damaging for Equity Focus' prospects are its dwindling assets under management, which stand at just US$30 million—down from US$400 million at the beginning of the year.

London-based Arrowgrass has allowed investors to flee in advance of its regular redemption dates following the August freefall, the Financial Times reports.

Arrowgrass launched the equity fund, helmed by SAC Capital Advisors veteran Andrew Billett—two years ago, just one year after the firm spun off from Deutsche Bank. It was a quick hit, forcing the fund to restrict inflows, and it did well in both 2009 and 2010 before hitting the skids this year.

Arrowgrass' flagship Master fund is essentially flat year-to-date after losing 2.7% in August. And Equity Focus' woes haven't cost the firm too dearly, as its assets under management have remained stable at about US$4.1 billion.

Arrowgrass may be losing its stock fund. But it has definitely lost its macro strategy chief.

James Barty has left the firm due to health reasons, according to the FT. Before joining Arrowgrass, Barty was an economist at Deutsche Bank.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...