Pine River to Shutter Fixed Income Fund, Return $1.6B to Investors

Jun 6 2016 | 11:48pm ET

Pine River Capital Management is shuttering its famed Pine River Fixed Income fund and will be returning capital to investors just weeks after fixed-income specialist Steve Kuhn stepped down as its manager.

The plans, revealed in a letter to clients by Pine River founder and CIO Brian Taylor,  will result in some $1.6 billion heading back to investors following and “the orderly process of converting the holdings of the Pine River Fixed Income Fund to cash and returning [it] to investors,” according to Reuters. 

Another catalyst for the closure of the fund has been the decision by Kuhn, a partner in the firm, to reduce day-to-day management responsibilities in favor of more philanthropic pursuits. 

The Pine River Fixed Income fund was started in 2008 and posted enviable returns for several years, including an eye-popping 93% in 2010, before faltering 2.7% in 2015. The fund is down 2.6% through May. 

Fund investors will be allowed to put money into the Pine River’s flagship $3.6 billion Pine River Fund, according to the letter. 

Further streamlining its operations, Pine River also plans to spin off its $1.2 billion China Fund, into a separate firm to be run by current manager Dan Li. Pine River will reportedly still be involved in Li's fund following the spinoff, although additional details were not immediately available. 

Based in Minnesota, Pine River was founded in 2002 by Taylor, Jeff Stolt, Aaron Yeary, and Nikhil Mankodi. The firm manages approximately $14 billion deployed across a series of hedge funds, managed accounts and listed securities. 


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

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

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...