Another day, another hedge fund casualty.
According to Bloomberg, Eyck Capital Management, a hedge fund started by Khing Oei in 2013 after he left Halcyon Asset Management, is returning capital to investors, just days after Eric Mindich, founder of $7 billion Eton Park, said last week it would also return client money after “disappointing” results last year.
The London-based distressed-debt fund managed $100 million at the end of last year and had struggled to raise enough assets to support costs, one of the people said, asking not to be identified because the information is private. Oei declined to comment.
According to its LinkedIn profile, “the Eyck European Tactical Distressed Opportunities Fund seeks to benefit from dislocations in credit by investing in European Distressed Debt, Stressed Debt and Special Situations, principally with an event-driven approach.” As Bloomberg adds, Eyck invested in distressed securities including the bonds of struggling Italian banks.”
It was among investors including Centerbridge Partners and Eton Park Capital Management that bought the junior debt of Italy’s Banca Monte dei Paschi di Siena SpA, teaming up to negotiate terms of a conversion into shares. The notes collapsed in value after a private rescue attempt for the bank failed.
The hedge-fund industry in Europe is shrinking as regulatory and compliance costs rise and investors withdraw capital. About 640 funds have shut down in the region since the start of 2015, while just 529 have opened, according to Eurekahedge data.
Oei, 41, was a London-based managing principal at Halcyon from 2006 until 2011. He previously worked at New York-based Fortress Investment Group LLC and Goldman Sachs Group.
via http://ift.tt/2oydALI Tyler Durden