Moore Global Investment pays $2bn back to investors
Louis M. Bacon, founder and head of New York-based Moore Global Investment fund has announced the decision to pay back $2bn to investors, a quarter of the value of assets under management, following a lack of investment opportunities and recent poor returns.
In a letter to investors, Bacon said that government intervention in markets had distorted them, making is hard to find profitable investment opportunities in the macro fund space.
“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 and the return they are hoping for or expecting,” he said.
According to the letter, the fund lost 2.2% in 2011 and 1.17% in the second quarter.
Bacon founded Moore Capital Management in 1990 with a $25,000 inheritance from his mother. The firm manages about $10.7bn in its hedge funds.