Event-Driven Hedge Fund Centaurus To Return External Capital

May 2 2013 | 10:40am ET

Battling redemptions and investors unhappy with its strategy, Centaurus Capital will return outside money.

The London-based hedge fund will move forward exclusively with internal capital—and without its Hong Kong office, which is also to be jettisoned, Reuters reports. Centaurus reportedly elected to forego client capital due to disagreements with investors about the best investment opportunities, and expects to return all investor cash within a few weeks.

"We have taken the decision to return investors' funds and go private," Randel Freeman, Centaurus' chief investment officer, said. "We are extremely grateful for the support of our investors over many years; however, we are keen for the investment flexibility that running our own money will deliver."

It is unclear whether the event-driven firm will close any of its three funds.

What is clear is that Centaurus' Asia office will be closed and its staff in Hong Kong, including fund manager Kim Yu Ang, let go.

Centaurus, which is unrelated to the Houston-based energy hedge fund closed last year by John Arnold, was founded by Freeman, Bernard Oppetit and several other BNP Paribas veterans in 2000. The firm, which had rebuilt its asset base after shuttering its flagship fund in 2008, had recently seen its assets under management fall below US$500 million. It is unclear how much of that remaining total belongs to investors.

Centaurus' performance has been good in recent years. Its Global Event Opportunities Fund returned almost 11% last year and is up 4.2% this year, and its Asia Pacific Opportunities Fund, run by Ang, is up 2.6% this year.


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