Odey Asset Management is closing a hedge fund that failed to capture enough investor interest, and money.
The London-based firm set up the Tactical Advantage Fund, a global long/short offering, in 2006, and opened it to more investment the following year. But Odey said the fund collected only about $8 million in assets from just three investors, less than a fifth of the amount it needed to remain economically viable, Wealth Bulletin reports. What’s more, the fund had performed poorly
“There was a lack of critical mass,” CEO David Stewart said. “Launching small funds in this environment doesn’t work—it is a symptom of the industry we are in at the moment.”
The fund’s manager, Suren Patel, is no longer a portfolio manager at Odey, but remains with the firm as an adviser to firm founder Crispin Odey.