Moore Capital Returning Capital
Louis Bacon's Hedge Fund Returning Capital to InvestorsIn a move that was more or less expected, Louis M. Bacon, a titan of the hedge fund industry, has decided to return $2 billion to investors or about a quarter of the assets under management of Moore Global Investment fund. Mr. Bacon referred to "disappointing returns" in explaining the decision, going on to say "“I am more comfortable taking down the size of the fund than increasing the size of the positions in order to give clients an adequate return given the fees they are paying."
There has been some rumor that Louis M. Bacon may decide to go the route of running a family office rather than continue to comply with more burdensome financial regulation and the demands of outside investors.
The hedge fund titan Louis M. Bacon has made billions of dollars for himself and his investors over the years by placing big bets that allowed him to overcome and profit from one financial crisis after another.
But like many others, he has been stumped by the current debt crisis in Europe — so much that he has done what such titans rarely do: Admit defeat and return about $2 billion, or 25 percent of the main fund he manages at Moore Capital Management, to his investors.
It is hard to figure out how to invest when actions taken by politicians can affect financial markets more than basic economic factors, he said.
“The political involvement is so extreme — we have not seen this since the postwar era. What they are doing is trying to thwart natural market outcomes,” Mr. Bacon said in an interview. “It is amazing how important the decision-making of one person, Angela Merkel, has become to world markets,” he added, referring to the German chancellor. Source