Multistrategy hedge fund manager Hutchin Hill Capital is closing after nine years and returning capital to investors by the end of the first quarter 2018.
"This decision is not about one year of performance, which has been disappointing. We have not delivered on our performance goals for three years in a row. During this period, we sought to adapt and invest in talent and strategies to ensure we had the best team to generate long-term results for our investors. We fought hard, but did not deliver the performance that you expected from us," said Neil A. Chriss, founder, managing principal, CEO and chief investment officer, in a letter to investors obtained by Pensions & Investments.
Mr. Chriss went on to say that Hutchin Hill's management team determined that continuing to try to run the firm's diversified alpha multistrategy fund with fewer people and resources and lower assets under management "would not be in the best interests of our investors."
Mr. Chriss said he plans to continue to focus on quantitative investing but did not indicate in the letter exactly what his money management plans are.
Hutchin Hill currently manages about $2.2 billion, down from a peak of $5 billion.