Deustche Bank-Backed Roc Liquidating Hedge Fund

Aug 1 2013 | 11:36am ET

Despite an impressive pedigree and some powerful backers, Roc Capital Management is closing its doors in the face of falling assets and poor performance.

The New York-based hedge fund has begun to liquidate its remaining portfolio, Bloomberg News reports. Roc plans to return all capital to clients within a few weeks.

Roc managed just $642 million at the beginning of March, down from $1.2 billion when it launched in 2009. The quantitative hedge fund was among the largest new hedge funds of that year, and was backed by Deutsche Bank, where founder Arvind Raghunathan and most of its staff formerly worked at its Equitech Group. The bank owned at least a 5% stake in Roc and put up $500 million of its initial capital.

Roc also had the support of one of India's richest couples, the daugher of ArcelorMittal chief Lakshmi Mittal and her husband, who in 2011 took between a 10% and 25% stake in Roc.

Roc, which has suffered losses, will survive as a firm. It plans to launch a new fund that will manage employee money only—at least initially.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...