Highfields To Return Up To $2 Billion

Oct 2 2013 | 12:52pm ET

Highfields Capital Management has become the latest hedge fund to decide enough is enough, when it comes to assets under management.

The Boston-based firm plans to return up to $2 billion of its $13 billion in assets to investors. Highfields wrote that its size is inhibiting its ability to produce returns.

"While we are quite comfortable with our ability to generate good returns at our current size, we would rather be slightly smaller and generate better ones," Highfields chief Jonathon Jacobson wrote to investors in a letter seen by Reuters. "As we have said in our recent letters, it has become increasingly difficult to find new compelling investments given today's low interest rates and how much equity multiples have expanded over the past 12 months."

Highfields said it would close to new investment at the end of the year and would probably return between 5% and 15% of its capital to investors. The firm is up 23% this year through September, boosting its assets from the $11 billion it began the year with.

Highfields' announcement follows a similar move by its fellow Boston hedge fund, Baupost Group, which plans to return some of its $28 billion to investors at the end of the year. Moore Capital Management and Tiger Global Management did so at the end of last year.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 
Error

FINalternatives Trending

From the current issue of