Redemption-Hit Arbalet To Close

Sep 19 2013 | 12:40am ET

When Jennifer Fan founded Arbalet Capital at the age of 28, she was a rising star in the hedge fund world. Unfortunately for her and for Arbalet's investors, she proved a shooting star.

Fan will shutter Arbalet just a year-and-a-half after it debuted as one of the largest new hedge funds of 2012. The Darien, Conn.-based firm suffered a 9% loss last year and a 6% loss in the first half, leading investors to bolt, Reuters reports.

Arbalet, which once managed almost $700 million, now has less than $200 million. The proximate cause of the commodity hedge fund's demise is the exit of several large investors, forcing the hand of other investors wary of or forbidden from holding so large a stake in a hedge fund. Among the redeemers was Schroders NewFinance Capital, which had some $200 million invested with Arbalet, which will close over the next couple of months, according to Reuters.

Fan launched Arbalet in April of last year. The firm employed the relative-value commodities strategy she managed at Arrowhawk Capital Partners—and featured about 10 Arrowhawk alums. Arrowhawk closed in early 2012 after failing to raise enough money.

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