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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note