Ritchie Capital Pulls Plug On Energy Fund

Nov 9 2006 | 12:42pm ET

Ritchie Capital, reportedly burned by the spike in natural gas prices that sank Amaranth Advisors, is shuttering its specialist energy hedge fund.

Doug Rothschild, partner-in-chief and administrative officer for the firm, said, “this is part of our broader plan to move the business forward and focus on interesting spaces where we have a definable edge and can capture alpha.”

The $2.8 billion Geneva, Ill.-based firm’s energy fund had had a rough 2006; it was down in double-digits even before September’s disastrous natural gas price movements. The firm successfully won investor approval of new investment terms, including some lock-ups of up to three years. The firm said the move was necessary to prevent an outflow of investors requiring a major asset sell-off.

Ritchie’s is not the only energy hedge fund to hit hard times. In addition to Amaranth, MotherRock also closed its doors this year, and Citadel Investment Group reportedly took a hit from the energy markets.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

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

AIMA: How The U.K.'s SMCR Will Affect U.S. Firms

Jun 20 2017 | 6:29pm ET

U.S. investment managers need to think seriously about how tough new U.K. conduct...

 
Error

From the current issue of