London hedge fund, Isller, to close it after faded returns

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The London -based hedge funds company closes EISLER amid a period of disappointing performance and the increasing cost to attract senior merchants.

The company, which managed about $ 4 billion of assets last year, stopped the recovery of investors from its multi -group fund to enable it to reduce its portfolio in an “organized” manner, according to an investor’s message that she sees financial times.

“Recently,” Edward Esler, chief investment official and founder of the company, said in the letter.

Esler, the former head of the Global Markets Department of Goldman Sachs, was trying to build a multi -manager to compete with industry giants such as Citadel, Millennium and Point72, as he launched his box in 2021.

Unlike the other Hedge boxes This tends to specialize in a specific strategy or a group of assets, and they have multiple managers if not hundreds of teams from the managers of the portfolio supported by analysts who trade with multiple assets. But the middle a A fierce war for merchants The letter said that he was able to achieve great profits, and Ezler had fought to balance employment expenses and keep governor directors while preserving the “acceptable” cost structure for its investors.

“After a careful study of these and other factors … we are no longer confident of our ability to achieve the goal of investing in the fund, which is to achieve superior absolute returns,” said Esler.

The fund gained 3 percent last year, 9.8 percent in 2023 and 15 percent in 2022, the familiar people said. In the letter, ISLER wrote the box, which achieved a net, annual returning compound, which was 7 percent since its establishment in 2021.

The letter added that the company expects to finish the Fund’s portfolio by the end of the year, with preliminary payments for investors to follow up “shortly after that.” After that, the company said it would finish any investment vehicles and the operations of the remaining group of the group.

ISRES refused to comment. The news was first reported by Bloomberg.

The decision emphasizes the intense competition in the multi -entrance sector. The company transferred most of the costs directly to investors instead of imposing administrative fees, a common practice among the largest industry groups.

Although the multiple managers sector was the hottest angle in the hedge fund industry in recent years, and has achieved the most important huge profit funds for investors, the high costs that these companies have incurred to create the best trading teams and technology systems can lead to counterproductive if they fail to provide strong performance.