U.S. Markets

Hedge fund Pine River loses $2 billion in 12 months to July

LONDON/BOSTON (Reuters) - Hedge fund firm Pine River Capital Management’s flagship fund has lost about 68 percent of its assets in the 12 months to July, according to data compiled by HSBC.

Assets in the multi-strategy fund dropped from $2.99 billion in July 2016 to $960 million in July 2017, the data showed.

Minnetonka, Minnesota-headquartered Pine River, which also has offices in New York, London, Hong Kong and Luxembourg, has hit hard times in recent years, shedding partners, assets and funds.

Firm-wide assets fell from $15 billion in 2015 to $8.5 billion in July 2017, according to a source close to the firm who asked to remain anonymous because Pine River is a private partnership.

The fund returned 1.7 percent in July and is up 1.2 percent for the first seven months of 2017, said a person familiar with the results, who also asked not to be identified.

A year ago, the firm consolidated its fund lineup when it closed its Pine River Fixed Income fund, which posted a 93 percent return in 2009, and said clients could switch their money to the Pine River Fund.

In early June 2016, the portfolio had $3.6 billion in assets. At that time, the firm’s founder, Brian Taylor, told clients: “We now believe we can best serve our investors by managing a single flagship multi-strategy fund - the Pine River Fund - which embodies our full opportunity set, rather than simultaneously managing two multi-strategy vehicles.”

Pine River is currently changing some of its trading strategies, and ending long-short equity trading, according to a report from Bloomberg in July.

Reporting by Maiya Keidan and Svea Herbst, additional reporting by Lawrence Delevigne; Editing by Rachel Armstrong and Tom Brown