By Sam Boughedda
ADG Capital Management, a quant macro hedge fund based in London, is shutting down, a Bloomberg report revealed Wednesday.
The fund is returning cash to investors after nine years. Bloomberg said it has seen an emailed letter to clients from the firm's chief executive officer Hasan Abdat which read: "After nine years of running the ADG Systematic Macro Strategy we have decided it is now time to cease investment activities associated with this strategy and return investor cash.”
The fund used quantitative models for trading in assets such as stocks, bonds, volatility, and currencies. At one point, the firm managed assets of more than $3 billion.
According to Bloomberg, citing funds, the statement and March newsletter, the decision to shut down was due to losses and outflows this year.
Abdat reportedly told clients the business case has also "deteriorated with investor outflows and the strategy itself going out of favor.”
Bloomberg stated that the ADG Systematic Macro fund had declined 13.7% during the first quarter.