San Francisco based Lonestar Capital Management is shutting down its operations after being whipsawed in the market this October.
October’s stock market plunge and quick recovery along with the Bank of Japan’s decision to ratchet up its monetary stimulus program in an attempt to combat deflation gave a huge blow the two-decade veteran hedge fund dipping its performance by 2%.
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The $1bn fund will give out a significant portion of its limited partners capital account by the end of 2014, with further allocations in the first half of 2015 thereby returning all its capital by June 30, 2015.
Jerome Simon, founder of Lonestar wrote in a letter, said: "By far the most difficult part of the decision…is an inability to claim the very highest ground of perennial outperformance."
