Moore To Return $2 Billion

Aug 1 2012 | 1:43pm ET

Moore Capital Management will return $2 billion to clients as it finds opportunities hard to come by in the current economic environment.

The distribution will leave Moore's flagship Global Investment Fund, managed by founder Louis Bacon, with about $6 billion. Moore currently oversees a total of $14 billion.

Bacon said a year-and-a-half of "disappointing" returns led to the decision.

"I am more comfortable taking down the size of the fund than increasing the size of the positions in order to give clients an adequate return given the fees they are paying," Bacon wrote to investors.

"Investing becomes primarily about who will be in the door first and out the door last," he continued. "Everyone is forced to become a macro investor or trader," making it harder for him to deploy all of Moore's assets. "Liquidity and opportunities have become more constrained."

"Unfortunately, as the amount and percentage of the assets I manage have increased these last several years, the markets have been trickier and less liquid," Bacon wrote. "The 'risk on/risk off' environment appears to be an abiding presence that has kept my market engagement low."

Moore Global is up 0.35% on the year.

Bacon laid much of the blame for the tough times at the feet of regulators and politicians, criticizing "a caustic political environment and an anti-business administration" in the U.S. and calling the "banking authorities" in the eurozone "a special case in ineptitude."


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note