Reuters- Meisenbach Capital, a $125 million California hedge fund, is liquidating after 16 years in business, a move that reflects challenges facing smaller fund managers as investors flock to larger funds. <\/p>\n
Founder Mark Meisenbach told investors in a Feb. 11 letter that the San Diego firm will close four funds and hand the proceeds back to investors.<\/p>\n
"The game has changed a lot over 16 years," Meisenbach, a 43-year-old former Donaldson, Lufkin & Jenrette broker, told Reuters in an interview. "It has become much more regulated, and you need more infrastructure and a lot more resources."<\/p>\n
The liquidation comes amid investor demands that hedge funds jack up their risk controls to fend off worries about high-profile blow-ups like Amaranth Advisors and Sowood Capital, two blue-chip firms that recently failed and lost billions of dollars for large pension funds.<\/p>\n