Commodities Hedge Fund Higgs To Close

Jan 2 2014 | 2:57pm 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.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

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

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of