Swedish hedge fund Informed Portfolio Management will cease all investment activities following performance issues and significant outflows.
The firm had almost $5 billion in AUM in late 2019, dropping to $2 billion a year later — hit by the coronavirus crisis — and has now fallen to about $750 million following investor outflows, Bloomberg reported.
The systematic macro hedge fund has suffered "lackluster performance and significant outflows" in the recent investment environment, a notice on the firm's website said Thursday. Given the impact of these factors on the business and its ability to deliver in line with client expectations, IPM's board recommended the firm cease investment activities and return capital to investors.
A majority of shareholders support the recommendation. Shareholders will vote in an upcoming extraordinary general meeting in the coming weeks, the notice said.
The "challenging combination of the strategy being out of favor, weak performance and substantial investment outflows has led us to recommend that the firm ceases all investment activities," Lars Ericsson, chairman of the board, said in the notice.
IPM is a subsidiary of property and investment management firm Catella.
Executives at IPM and Catella could not be reached for comment.