Benros Capital, one of a number of high-profile hedge funds launched by former Goldman Sachs prop. traders, is throwing in the towel after losing a key investor.
The event-driven fund decided to call it a day after Brummer & Partners, Sweden's largest hedge fund manager, announced it was pulling its $300 million investment, reports Financial News.
A statement published Tuesday on the Brummer's web site said the firm's Multi-Strategy fund had decided to redeem its investment in the Benros Event Driven and Opportunistic Fund because “the fund’s performance has not met expectations.”
From inception in June 2011 to January 2013, the fund lost 7%, said Brummer.
A person familiar with the situation told FN the loss of Brummer's $300 million—which represented the majority of Benros' assets—caused the fund managers to decide to close the business and return remaining money to investors.
Benros Capital was founded by Daniele Benatoff and Ariel Roskis who worked at Goldman’s Principal Strategies proprietary trading desk under Pierre-Henri Flamand. Flamand also left Goldman to start his own hedge fund, Edoma Capital, which he announced he was shutting in November.