Robertson-Backed Emerging Sovereign Group Said to Close Macro Hedge Fund

Dec 7 2016 | 10:41pm ET

Emerging Sovereign Group (ESG) is reportedly shuttering its Emerging Sovereign Master Fund following investor redemptions. 

The global macro fund has approximately $100 million in mostly internal AUM, according to Bloomberg. News of the fund’s closing was first reported by Business Insider citing an unidentified person familiar with the matter.

Founded in 2002 by former Morgan Stanley executives Kevin Kenny, Mete Tuncel and Jason Kirschner, ESG launched with seed capital from Tiger Management’s Julian Robertson. Carlyle Group bought 55% of the firm in 2011 during its expansion into hedge fund ownership, buying stakes in funds such as Claren Road and Vermillion, but sold it back to ESG’s partners in August as it unwinds the holdings. 

ESG managed approximately $3.5 billion as of June 2016, deployed primarily in its Cross Border Equity and Domestic Opportunity funds. The decision to close the macro fund comes close on the heels of news of fund closures by two other tiger cubs, as funds backed by Robertson are colloqially called: Orlando Muyshondt’s event-driven Tyrian Investments and Paul Hudson’s Glade Brook Capital.

The hedge fund industry as a whole has seen around $77 billion in redemptions this year through October, according to data provider eVestment, and experienced the highest quarterly outflow since Q2/2009 during the third quarter. 

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