$2 Billion Hedge Fund To Return Outside Capital

Nov 19 2012 | 1:14pm ET

New York-based hedge fund Libra Advisors will close its doors to outside investors, the latest firm to choose life as a family office over dealing with new regulatory headaches and the vicissitudes of investors.

Libra founder Ranjan Tandon told clients that the fund will return outside capital by the end of the year. Tandon, who founded Libra in 1990, said that new regulations, trading rules and expected higher taxes were behind his decision. He said the new environment "will take time away from what I enjoy most, investing."

"After due reflection, I have decided to retire from managing client funds and will redeem all external capital," he wrote. "I regret any losses that you have incurred, especially losses borne by investors that began investing with Libra more recently."

The $2 billion hedge fund suffered losses last year.

Tandon also cited market difficulties for his decision to close Libra, and wrote that those troubles have been exacerbated by "unconventional monetary policies."

Libra's wind-down was first reported by The Wall Street Journal.

Tandon said that he would refashion Libra as a family office. In doing so, he joins the likes of George Soros, Carl Icahn, John Arnold, John Henry and Jerry Weintraub, all of whom have made similar moves in recent years.

In the Nov. 9 letter, Tandon said it would waive management fees for investors who were in the red as of the end of the year.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.