I’ve always thought Bacon was a pretty interesting guy, but alas these guys are going the way of the dodo bird.
Louis Moore Bacon plans to give back $2 billion, or 25 percent of his main hedge fund, to investors, saying it may be too big for him to achieve past returns as “liquidity and opportunities have become more constrained.”
Bacon, who seeks to exploit macroeconomic trends such as changes in interest rates and currencies, returned a “disappointing” 0.35 percent in the first half and a “tolerable” 6 percent in the past year, according to letter sent today to clients. He has gained more than 18 percent a year since starting the Moore Global Investments fund in 1989.
“Unfortunately, as the amount and percentage of the assets I manage have increased these last several years, the markets have been trickier and less liquid,” Bacon, who is based in New York, wrote in his eight-page letter. “The ‘risk on/risk off’ environment appears to be an abiding presence that has kept my market engagement low.”
Bacon, 56, isn’t the only multibillion-dollar macro-fund manager struggling to make money this year. Ray Dalio’s Bridgewater Associates LP lost 2 percent in its $54 billion Pure Alpha II fund this year through July 20, according to investors. Alan Howard, who runs Brevan Howard Asset Management LLP, lost 1.3 percent in his $26 billion Master Fund in the same period, clients said.