Hedge fund Achievement Asset to shut down after energy losses
NEW YORK (Reuters) - Hedge fund Achievement Asset Management is shutting its doors after suffering losses on energy market bets this year, becoming the latest investment firm to return capital to clients in a year many managers have struggled to make money.
The Chicago-based firm, run by Joseph Scoby, plans to return $875 million to clients by the end of the year, according to published reports in Crain's Chicago Business and the Wall Street Journal.
Voicemails left for Scoby and the firm's chief operating officer were not immediately returned. The company also did not return an email seeking comment.
At its peak in 2014 the firm oversaw roughly $2 billion in assets but investors had been pulling money out as returns sagged. The fund lost roughly 7 percent this year as its bets on corporate bonds soured, Crain's reported.
Betting on the battered energy sector had become a hot trade this year, but it has not worked out for some investors who have suffered as oil continued to fall, approaching nearly $40 a barrel on Tuesday.
The average hedge fund has lost 0.05 percent through October, Hedge Fund Research data show.
Last month Fortress Investment Group said it is closing down its global macro fund amid losses and before that Bain Capital and Armored Wolf said they would be returning outside capital.
(Reporting by Svea Herbst-Bayliss; Editing by Alan Crosby)
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