1st Dec 2015 14:24
LONDON (Alliance News) - BlueCrest AllBlue Fund Ltd on Tuesday said it has been informed by manager BlueCrest Capital Management that it intends to return all the external capital held by its funds to investors.
BlueCrest, the hedge fund run by billionaire Mike Platt, will return funds to external investors and will instead focus on managing Platt's fortune and money from its other partners and employees.
The move will impact the AllBlue Fund, which is listed in London.
In a letter to shareholders, Platt said BlueCrest will become a "private investment partnership", focusing solely on the assets of its partners and employees.
"Recent developments in the industry, including, among other things, downward pressure on fee levels, the increasing cost of hiring the best portfolio management talent and the difficulty in tailoring investment products to meet the individual needs and constraints of a large number of diverse investors, have all significantly reduced industry profitability and flexibility," said Platt.
"These factors have affected BlueCrest along with many other industry participants, and BlueCrest believes that a transition to a private investment partnership model is now appropriate for the business," he added.
BlueCrest funds will now begin the process of returning external funds to investors, with 70% of the funds due to be paid back to investors by the end of January 2016 and around 90% by the end of the first quarter of 2016. The remainder will then be paid as soon as practicable thereafter.
Shares in the BlueCrest AllBlue Fund were down 0.1% to 191.30 pence Tuesday afternoon, having brief spiked to a new 52-week high of 200.00p on the announcement.
By Sam Unsted; [email protected]; @SamUAtAlliance
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