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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR