Hedge fund Comac Capital has slashed one-third of its staff after its assets under management fell by more than half.
The London-based firm has suffered two straight years of losses and seen its assets fall from US$4.8 billion to US$2.2 billion over the last year. In response, Comac laid off 18 employees last month, The Wall Street Journal reports, the result of a "strategic decision" to shrink the firm back to a size that had proven successful.
"I don't think our performance is where I expect it to be, and it's not where I expect it to be in the future," Comac founder Colm O'Shea said.
Comac lost 9% last year and is down almost 5% this year.
Despite the losses and layoffs, Comac isn't changing its strategy, O'Shea told the Journal. He said that the firm believed its money-losing fixed-income bets would turn around.
"Volatility is rising, markets are moving and, very importantly, correlations have fallen," he said. "Equities, fixed-income and the U.S. dollar are acting very, very differently. This is something I see as being very good for the macro opportunity set."