March 20, 2012 / 6:36 AM / 7 years ago

TIG shuts 15-year-old emerging markets hedge fund

HONG KONG (Reuters) - TIG Advisors, LLC is liquidating its $210 million global emerging markets hedge fund, according to a letter to investors seen by Reuters, the latest in a growing list of hedge funds to shut shop after their second annual loss in four years.

The 15-year-old long/short equities hedge fund managed peak assets of about $1.5 billion in 2008. Assets had fallen to about $750 million by April 2009.

“Our Global Emerging Markets funds have been closed and are being liquidated,” the New York-based hedge fund said in an e-mail to investors dated March 9, obtained by Reuters.

TIG Global Emerging Markets fund lost nearly 11 percent last year, according to another fund information document seen by Reuters, still better than the Eurekahedge Emerging Markets Long Short Equities index which lost 13.6 percent in 2011.

The hedge fund had gained 9.7 percent in 2010 and 6 percent in 2009, falling behind the Eurekahedge index’s 10.4 percent and 44.4 percent returns respectively.

TIG Advisors managed about $1.1 billion under four other hedge fund strategies at the end of February.

E-mails to TIG Advisors remained unanswered.

Europe’s debt crisis, a sluggish U.S. recovery and events such as Japan’s nuclear disaster last year combined to create a tough trading environment for hedge funds.

That has led to investors pulling out from Asia-focused hedge funds with closures surging past launches for the first time since 2008, putting pressure on the industry which remains about $50 billion behind its peak assets of $176 billion.

More than 140 Asia-focused hedge funds shut down last year, according to industry tracker Eurekahedge.

TIG joins the likes of Doric Capital, one of Hong Kong’s oldest hedge fund firms founded by former Man Group Plc executive Michael Nock, and Thaddeus Capital Management who shut hedge funds recently.

Other closures include Boyer Allan Investment Management, Singapore-based RSR Capital, Britain-based Wessex and Singapore-based Komodo Capital.

Reporting by Nishant Kumar; Editing by Ed Davies

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