Wednesday, 29 March 2017
Last updated 52 min ago
Mar 17 2017 | 11:16pm ET
Paul Singer’s Elliott Management will reportedly accept new investments starting in the second quarter, reopening one of the best-known multi-strategy hedge funds to additional capital just as large shifts in broad trends like interest rates begin.
In the past, Elliott has typically secured capital from investors and then deployed it over subsequent years as opportunities arise, a model generally more common among private equity firms than hedge fund managers.
Elliott last raised capital in 2015 and 2013, when it pulled in $3.8 billion and $3.3 billion, respectively, according to Bloomberg. Previously, new capital was a mix between extensions of existing relationships and fresh money. It was not immediately clear whether Elliott is seeking new investors, new committments from existing investors, or both.
Elliot has performed very well in recent years. The company’s flagship fund returned more than 13% in 2016, far in excess of the 5.3% booked by the average multi-strategy hedge fund as tracked by Hedge Fund Research, and has earned an average annualized gain of 13.5% since inception in 1977. It has suffered only two down years, Bloomberg reported.
Singer founded Elliott in 1977 and has since become one of the world’s most prolific activist investors. The firm manages approximately $32 billion through a number of investment vehicles active in debt, equities, commodities, currencies and various other asset classes.