Thursday, 20 November 2014
Last updated 8 hours ago
Sep 20 2013 | 12:21pm ET
Prominent commodities hedge fund Clive Capital is calling it quits amidst its third-consecutive down year.
The London-based firm, which has US$1 billion in assets, will close at the end of the month, it told investors today. Investors will receive 98% of their money next month and the rest following a final audit.
"We perceive there to be limited, suitable opportunities at this point in the economic demand and the commodity-supply cycles to enable us to utilize our directional, long volatility approach to generate the strong returns of the past," the firm wrote, noting that it had produced annualized returns of 9% since it debuted in 2007.
"All of us at Clive sincerely appreciate and greatly value the support you have given us over the years."
The firm has shrunk by almost half since the end of last year, and is down from US$3.6 billion at the end of 2011.
Clive, led by Moore Capital Management veteran Chris Levett, lost 9.9% in 2011, 8.8% last year and is down 9.1% this year—a major negative swing for a firm that was up 5.2% through the middle of April.
Earlier this year, the firm slashed fees in an effort to hold on to clients, agreeing to reduce them for Class B shareholders from 2.5% for management and 25% for performance to 2% and 20%.
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