Nevsky Capital — the $7bn London-based emerging markets hedge fund manager that spun out of Thames River in 2007 — is to wind-up its flagship fund.
Martin Taylor and Nick Barnes, the managers of the $3.3bn flagshup fund, are throwing in the towel — for now. Both will continue to run the fund for the next 12 months. Thereafter it’s time with the family, or some such.
The pair are two of the most respected Russia experts in the City. The Nevsky fund returned 750 per cent since its inception in 2000, though is now mainly invested in a range of emerging markets.
Details are available in the fund’s latest letter to investors.
While no concrete decision on the fund’s future has yet been made by the board, it’s pretty clear that Nevsky Capital, as manager, won’t be part of the picture. Consequently, in the view of several investors polled by the FT, liquidation is more or less inevitable.
This from a letter sent out to investors on Wednesday morning (emphasis FT Alphaville’s):
The Fund operates a highly specialised long/short strategy investing in global securities with a core emphasis on emerging markets. The investment managers responsible for managing the Fund’s portfolio are Martin Taylor and Nick Barnes. Martin and Nick have been involved in the management of the Fund at both Thames River Capital and the Investment Adviser since 2000 and 2001 respectively.
We are informed by the Manager and the Investment Adviser that, whilst Martin’s and Nick’s enthusiasm for the Fund’s strategy remains, neither individual feels able to commit to managing the Fund’s portfolio with the intensity that they would wish to continue to provide beyond March 2011.Given the highly specialised nature of the Fund’s mandate and the central role that Martin and Nick fulfil in this regard, neither the Manager nor the Investment Adviser believe they are able to offer the Fund alternative management arrangements from within the Manager or the Investment Adviser.
Better get your redemption requests in by the 18th, ladies and gents.