Toronto Hedge Fund To Close Flagship

Oct 29 2008 | 2:36am ET

Toronto-based Epic Capital Management is shuttering its flagship hedge fund as returns sink and investors head for the door.

Epic, which focuses on mid-cap Canadian companies, has seen the flagship fall by 38% this year, leading many investors to seek redemptions, the Globe and Mail reports. The fund's assets have fallen by C$100 million amidst the market volatility, leading the firm to seek investor approval for a liquidation.

"We wanted to do it while we could and didn't have a gun to our head," Epic CEO David Fawcett said.

The closure, which will also lead to the layoff of five of Epic's six employees, is also the deathknell for another hedge fund, which Epic manages for Toronto-based Arrow Hedge Partners. The C$35 million Arrow Epic Fund is to be wound down alongside the Epic fund.

"It's not our decision, but if they are going to shut down their two other funds, we have no choice," Arrow CEO James McGovern said. "Otherwise, our investors will be disadvantaged."


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

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

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of