Others firms have been losing money for more than a year. Mason Capital, an event-driven fund based in New York, was down about 20 percent from the start of 2014 through this year’s third quarter, according to investors. Assets fell to about $5.6 billion from about $9 billion at the end of last year.
Fortress Investment Group LLC said in October it was closing its $2.3 billion macro business run by Michael Novogratz after posting losses for almost two years. Earlier that month, Bain Capital decided to shutter its Absolute Return Capital fund after more than three years of declines.
At BlueCrest, assets have shrunk by more than 40 percent this year to $7.9 billion, mostly from withdrawals after years of lackluster returns in what was once its biggest fund. New Jersey’s public pension plan decided to pull $284 million from one international fund as of June 30, citing “disappointing” returns just over a year after adding to its investment.
Hanging On
Och-Ziff, run by Dan Och, saw $4.2 billion leave its $30 billion multistrategy funds in the first nine months of 2015. Its biggest fund is little changed this year. The firm could face more withdrawals in 2016, depending on the outcome of an investigation by the U.S. Justice Department into whether it broke bribery laws in accepting an investment from the Libyan Investment Authority. Och-Ziff has told investors the matter is likely to be resolved next year, according to a person briefed on the matter.
Spokesmen at the firms declined to comment on flows and performance or didn’t return calls.
Some firms will be able to hang on to much of their cash regardless of performance. Certain investors in Ackman’s Pershing Square Capital Management can only take out one-eighth of their money every quarter, meaning it takes two years to exit completely. At the end of 2014, those restrictions applied to clients accounting for about a third of the firm’s $18 billion. About another third was permanent capital from a share sale last year.
Among the biggest winners is Millennium Management, run by Israel Englander. Its hedge fund pulled in a net $4.1 billion, bringing assets to $32.5 billion at the start of November, according to a person familiar with the firm.