Arcadia Capital Advisors plans to liquidate its hedge fund after its seed investor moved to redeem its capital.
MD Sass decided to pull its investment due to New York-based Arcadia’s inability to raise money. Those factors pushed managing director Richard Rofé to return all capital to outside investors by April. Rofé plans to look for other strategic partners to back a concentrated activist fund at Arcadia.
MD Sass’s MD Sass-Macquarie Financial Strategies Fund’s three-year contract with Arcadia expired in October.
“I have a high regard for Arcadia’s money manager, Richard Rofé, and enjoy a good relationship with him,” MD Sass’s Martin Sass told HFMWeek. “The reason for withdrawing is the difficulty in raising assets for a start-up micro-cap activist equity-oriented fund in the current market.”