New York (HedgeCo.net) – This year has seen a number of hedge fund closings, but the biggest surprise may have been announced yesterday when BlueCrest Capital, the hedge fund firm founded by billionaire Michael Platt, will return all money provided by outside investors.

The move comes as the fund has faced pressure from investors regarding mediocre performance as well as fees. The firm was established 15 years ago and had performed well initially and managed as much as $30 billion as a result. Investor redemptions had hit the firm pretty hard in recent years and that was reflected in the AUM dropping to $8 billion.

While the firm is returning all money from outside investors, they plan to continue operations as a private investment firm similar to a family office. One of the reasons cited for the move was to allow the firm greater flexibility when it comes to investment opportunities. In the announcement from BlueCrest, Platt stated, “We will be stronger and more flexible under our new business model, and see exciting opportunities to grow significantly in terms of numbers of trading teams and assets under management.”

The firm anticipates having the majority of investor money returned by the end of the first quarter of 2016.

Rick Pendergraft
Research Analyst
HedgeCoVest