Brencourt To Become Family Office, Return Outside Capital

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.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.