John Arnold Centaurus Advisors
John Arnold to Close Hedge Fund Centaurus Advisors
In a surprising move, energy trading superstar and hedge fund manager John Arnold has reportedly decided to shut down his fund and return investor money. Arnold made a name for himself at Enron and then struck out on his own in 2002 founding Centaurus Advisers. At his hedge fund, Arnold achieved triple digit returns but in recent years performance has been less stellar although he still managed to beat many hedge funds last year.
John Arnold, one of the most profitable traders in the hedge fund industry, has decided to shut down his Centaurus Advisors and return money to investors, according to people familiar with the matter. He joins a string of wealthy managers who have made such a move after much success.
Mr. Arnold, who burnished his reputation at Enron before starting his hedge fund in 2002, did not specify his reasons for shutting the fund, but said simply it was time to pursue other interests. With an estimated net worth of $3 billion, Mr. Arnold joins the ranks of big-money managers who can afford to walk away.
As both hedge funds and commodities trading face unprecedented new regulations and oversight, Mr. Arnold had been unable to reproduce the triple-digit gains that made him famous (and have left him with an average annual return in excess of 100 percent).
In 2010, he experienced his first year of negative performance. Last year, while most hedge funds lost money, Mr. Arnold returned about 7 percent, according to the people.
Mr. Arnold, who is based in Houston, could not be reached for comment. The news was first reported by Reuters. Source
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