KKR & Co. is shutting its equity hedge fund, about three years after hiring former Goldman Sachs Group proprietary trader Bob Howard to run it.
“We have decided to close KKR Equity Strategies and return capital to investors,” the firm said in an e-mailed statement. “We would like to thank Bob Howard and the team for their dedication to the firm and exceptional professionalism in serving our clients.”
The $510 million KKR Equities Strategies fund, which was started in August 2011, was liquidated last week, according to a person with knowledge of the matter who asked not to be identified because the information is private. The fund had less than 20 outside clients that had $337 million invested, money that will be returned starting this month, the person said.
Mr. Howard's fund gained about 15% since inception, the person said. That compares with a 7.1% return from equity hedge funds in the same period, according to data compiled by Bloomberg.
KKR said it will be focusing on KKR Prisma, a unit that has invested more than $10 billion in hedge funds, and building strategic stakes and backing the firms.
KKR said it will also concentrate on its credit hedge funds that have about $800 million in assets. The firm last year bought Avoca Capital to expand its European credit business.