The market continues to take its toll on commodity hedge funds, claiming another casualty this week.
Schroders NewFinance Capital is closing its Opus fund of commodity hedge funds. The firm said that it had filed redemption notices with the funds’ underlying managers and would return the money to investors over the course of the summer.
“We can confirm that in the best interests of shareholders, Schroders has decided to wind up” the fund “given pending redemptions and the challenging market for commodities more generally,” Schroders said.
Opus, which invested with the likes of Astenbeck Capital and Frere Hall Capital Management, and which had 17 underlying managers as of last year, has seen its assets drop from US$2.3 billion to just a few hundred million dollars. Schroders, which wants to exit the commodities market, has been mulling an Opus closure for several months. Managers David Mooney and Cedric Bellanger will leave the firm.
Opus’ demise was first reported by the Financial Times. Its closure follows those of Arbalet Capital, Clive Capital, Higgs Capital and SandRidge Capital over the past two years. In October, another fund of commodities hedge fund, managed by Oakley Capital Management, also threw in the towel.