The $2.2 billion multi-strategy hedge fund manager did not deliver on goals for three consecutive years, according to a Bloomberg article citing an investor letter dated November 30 and seen by multiple media outlets. “We fought hard, but did not deliver the performance that you expected from us,” Chriss reportedly wrote in the letter.
Hutchin Hill is down -5.5% for the year through mid-November, the article continued, after booking +4.7% in 2016 and -5.2% in 2015. Since inception in 2008, the fund generated a net cumulative return of +83.2% and 6.6% annually, the investor letter noted.
Investors will receive their money back by the end of March, Bloomberg said. The fund shut down its credit strategy several weeks ago to concentrate on long/short equity, macro and systematic investing.
Hutchin Hill was founded in 2007 with backing from Renaissance Technologies founder James Simons, and later became a beneficiary of the market volatility associated with Bruno Iksil’s infamous London Whale trades in 2012. Chriss, who launched the quantitative strategies division at SAC Capital Advisors and built Hutchin Hill’s AUM to nearly $5 billion in AUM at one point, said in the investor letter that he will continue working in the quantitative investing sector.
Source: Fin Alternatives