Commodities Hedge Fund Higgs To Close

Jan 2 2014 | 1:57pm ET

In its last days, 2013 claimed another commodities hedge fund casualty.

Higgs Capital Management joined Clive Capital and Arbalet Capital in announcing its liquidation last year, telling investors on Monday that it would close. The firm, which was founded in early 2012, fell victim to declining investor appetite for commodities hedge funds, which by and large suffered a terrible 2013.

"Over the life of the fund we made money," co-founder Neal Shear, formerly head of global securities at UBS, told Reuters. "Our closing is largely a factor of redemptions that are happening in the commodity market and lack of stability of our capital."

That lack of stability would have forced London-based Higgs to restructure the fund to cut expenses, changes that "would have handicapped our performance going forward which would have been detrimental to existing investors and employees," the firm wrote to clients.

Higgs, which manages about US$250 million and focuses on energy, metals and agriculture, said it would begin an "orderly" wind-down.

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