Pine River Shuttering $1.6 Billion Fixed Income Fund

Following a brief surge of hedge fund closure announcements in late 2015 and early 2016, there had been a lull in hedge fund shutterings in recent months, as the smart money community had benefited from the dramatic jump in the S&P500 to just shy of all time highs. That changed moments ago when Reuters reported that hedge fund Pine River Capital Management is closing its Pine River Fixed Income fund and returning roughly $1.6 billion in assets to investors just two months after Steve Kuhn, one of the fund’s co-managers, left the firm.
As Reuters adds, Brian Taylor, Pine River’s founder and co-chief investment officer, told clients on Monday that the eight year old fund, which posted some of the hedge fund industry’s most eye-popping returns but lost money in 2015 and early 2016, will be closed.
“The next step in this rationalization effort will be the orderly process of converting the holdings of the Pine River Fixed Income Fund to cash and returning that cash to investors,” Taylor wrote in a letter which was seen by Reuters.
“We feel that the timing is appropriate following the recent decision by Partner and Fixed Income Fund founder Steve Kuhn to reduce his role at Pine River to focus on philanthropy.”

This post was published at Zero Hedge by Tyler Durden – Jun 6, 2016.