Thursday, 31 July 2014
Last updated 4 hours ago
Sep 28 2012 | 2:50pm ET
Fundraising woes have claimed another hedge fund victim, as Brencourt Advisors plans to close its doors.
The New York-based multi-strategy hedge fund said it would return outside capital and become a family office, liquidating most of its funds by the end of the year. Clients can expect to begin receiving their money in October, Bloomberg News reports.
Brencourt broke the news to investors in a Sept. 14 letter. It told clients that it would liquidate all of most of its Multi Strategy, Credit Opportunities and Merger Arbitrage funds. The $300 million firm, which once managed as much as $2.5 billion, said its fundraising struggles were to blame for its demise after a dozen years in business.
Brencourt has about 20 employees, whose fate is unclear.
"I intend to convert Brencourt Advisors to a family office in 2013," CEO William Collins wrote. "This will allow me to continue to participate in the profession which I immensely enjoyed over the last 36 years, while providing me with more time to spend with my family and purse my charitable and other interests."
All three of Brencourt's funds are up about 3% this year.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…