K2 Advisors is to shut its fund of currency hedge funds after the departure of its portfolio manager.
The Connecticut-based firm decided to close the six-year-old Active Currency Fund, the first specialist currency fund of funds when it launched in 2006, after the manager resigned. It will liquidate the $22 million fund and return money to investors; in its place, K2 plans to launch a macro fund of funds that will include currency managers, HFMWeek reports.
The decision to shutter the Currency Fund ends its somewhat turbulent life: The fund was comprehensively restructured two years ago after all of its underlying foreign exchange managers closed.
K2's new fund of funds will debut on May 1. But at least one of the Currency fund's current investors won't be sticking around to see it.
The $3.1 billion Ventura County (Calif.) Employees' Retirement Association will redeem its $10 million commitment to the fund, it told HFMWeek. The pension said it expected to get $8 million back.