Thursday, 23 March 2017
Last updated 18 hours ago
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."