Weiss multi-strategy hedge fund to shut after 46 years

WEISS Multi-Strategy Advisers, a New York-based funding administration agency began in 1978, is winding down its operations.

“Every journey has twists and turns, and after careful consideration of various factors and circumstances, I have arrived at the difficult decision to conclude this journey,” George Weiss, the agency’s founder and chief government, wrote in a letter to shoppers and companions.

Weiss, 81, mentioned the agency has “diligently wound down the vast majority of client portfolios”.

A consultant for the agency declined to remark.

Multi-strategy funds deploy a number of groups to handle cash throughout numerous funding methods.

Weiss managed US$3.1 billion as at mid-2023, in keeping with With Intelligence, which earlier reported the plan. The fund gained 6 per cent in 2023 following a 0.6 per cent loss in 2022, the commerce publication mentioned, with the common multi-strategy, multi-manager fund up 8 per cent final 12 months.

Jordi Visser, the agency’s chief funding officer, joined the agency in 2005. He beforehand ran a macro portfolio at Weiss earlier than taking over the highest funding function. As at March 2023, Weiss employed 119 folks, of which 61 have been funding professionals, in keeping with an SEC submitting.

A Goldman Sachs report final month discovered investor urge for food for nearly each hedge fund technique this 12 months has diminished from 2023, which was already the weakest 12 months on document for gross inflows.

The report discovered that investor curiosity in multi-strategy funds is waning after peaking in 2023, with 16 per cent of these surveyed saying they plan to allocate to the technique, versus 31 per cent final 12 months. Meanwhile, 7 per cent of shoppers mentioned they plan to redeem this 12 months, up from 4 per cent in 2023.

“We believe that strong multiyear flows into the strategy, combined with somewhat softer performance last year, are driving this fall in interest,” Goldman wrote. BLOOMBERG