Wednesday, February 13, 2013

Investors yank $1 billion from hedge fund giant

Reuters reports: Winton Capital, one of the world's most successful hedge fund firms, has seen clients pull $1 billion of cash out of its portfolios amid falling returns from computer-driven fund managers.

The firm set up by Cambridge physicist David Harding, one of Britain's richest financiers, said that assets had dropped to about $26 billion at the end of 2012, from $29 billion in May.
While part of the drop was down to performance losses, about $1 billion had been withdrawn by clients, a spokesman told Reuters.

The heavy outflow is likely to have stemmed from Winton's decision during the credit crisis to cut risk levels - a move that makes it attractive to more conservative investors such as pension funds but does not always suit investors chasing higher returns....

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