If further proof that the industry is going through tough times, one of the oldest hedge funds in London shuts its flagship fund.
One of the oldest hedge fund managers in London has been forced to shutter its flagship fund due to poor performance: Rubicon Fund Management is closing its Global fund despite it being run by star manager, Paul Brewer, a former global co-head of foreign exchange at Salomon Brothers.
The fund – which trades on macro trends – generated double-digit gains between 2014-2016, especially in the aftermath of the Trump presidential victory in November 2016, when Brewer bet the right way on rising bond yields.
Rubicon is the latest macro fund to collapse under the unpredictability of global bond, currency, and equity markets. Quantitative Easing has distorted systemic trends in the industry and many erstwhile star traders have got big bets wrong. Rubicon is making job cuts as a result of the closure, another industry-wide phenomenon since hedge funds first sailed into trouble last year.
