Founders of commodity hedge fund Higgs Capital Management have informed investors that they will wind down the firm and return money to them.
"Over the life of the fund we made money," co-founder Neal Shear, formerly head of global securities at UBS, told Reuters. "Our closing is largely a factor of redemptions that are happening in the commodity market and lack of stability of our capital."
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The London-based firm, which was founded by two former bank commodity executives in early 2012, fell victim to declining investor appetite for commodities hedge funds, which by and large suffered a terrible 2013.
A staff of 12 managed about US$250 million in assets and invested in energy, metals and agriculture markets.
Higgs joins commodities funds like Clive Capital, managed by Chris Levett, and Arbalet Capital, launched in 2012 by Jennifer Fan which have shut their doors this year.
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