Talal Shakerchi's Meditor Capital Management is shuttering its European equity fund, citing an internal review and tough new European short-selling rules.
The UK-based hedge fund says it can liquidate most of its funds within a few weeks.
In a letter to investors seen by Bloomberg, Shakerchi wrote that the firm had decided, after its review, to eliminate "carve outs," in which individual money managers have control over portions of the fund, a decision he said would reduce the amount of money the firm can manage.
But he also knocked new EU rules which require managers to disclose short bets:
"These rules disadvantage larger managers who actively short like Meditor," Shakerchi wrote. “We are no longer confident that we can continue to offer good value to our clients on our current scale.”
The firm has generated annual returns of 13% since its inception 15 years ago, and is up about 16% this year, according to Bloomberg.