Cantillon shuts hedge funds after missing out on rebound
CANTILLON Capital Management, the asset manager run by William von Mueffling, is closing two embattled hedge funds valued at $3.5bn (£2.1bn) after failing to capitalise on recent market rallies.
The US group told its hedge fund investors yesterday they will be handed back what is left of their capital – the two funds fell between seven and eight per cent in May versus strong gains seen in most hedge funds.
Mueffling, who left US asset management giant Lazard in 2003 to launch Cantillon, had won a reputation for consistent returns and the hedge funds lost less than rivals last year. They fell just 10 per cent compared to an average 19 per cent loss across the industry.
It is thought the sustained period of negative performance, which has seen hundreds of hedge funds close as asset managers cannot claim performance fees on them unless they register growth, caused Cantillon to abandon the products.
The funds were a giant $2.7bn global equities fund and an $800m European fund.
The company’s remaining $4.5bn of assets, held in non-hedge vehicles, are expected to continue operating.