Connecticut-based hedge fund firm 5:15 Capital Management is closing its doors due to investor redemptions.
In a letter to investors obtained by Bloomberg, 5:15 co-founders E.G. Fisher and Rob Wahl explained that redemptions “driven by sector rotation” and “weakness in the fund-of-fund industry” led the assets in the firm’s main fund to drop to $370 million from its peak of $1 billion.
The pair also said that they did consider restructuring the firm to manage a reduced AUM, however they came to the conclusion that because of its trading strategy, winding down the fund would be in the investors’ best interest.
Launched in 2009, 5:15 utilizes global fixed income interest rate arbitrage and tail risk strategies.