Sunday, 28 December 2014
Last updated 3 days ago
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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