|Kleinheinz Capital Partners Inc, Ridley Park Capital LLP, Apson Capital LLP, Edoma Partners and Weintraub Capital Management are among the growing list of hedge funds to close their doors in 2012. According to the Wall Street Journal, the 424 closings in the first six month are on track to top the number of closures in 2010 and in 2011. |
Industry analysts point to the changing market and regulatory environment, as well as the low tolerance of short-sighted investors as the key factors in driving many struggling hedge funds out of business. Recent closures such as Grant Capital and OMG Capital cite the emergence of macro event-driven markets as a primary reason why their strategies are no longer effective. Edoma Partners, an event-driven hedge fund that relies on mergers, IPOs, and takeovers, suffered from the lack of deals due to a sluggish economy.