Boutique hedge fund manager Adelante Asset Management has shut down its global emerging markets debt fund after 14 years in business.
Financial News reported Adelante returned money back to investors in the $80 million fund at the end of July after it realized that its long-biased investment style, which was to identify investments in external debt, local debt and local currency, is not suitable for the current economic environment. The fund lost approximately 2% in the first seven months of 2013.
Separately, Adelante also closed its emerging markets equity fund a few months ago.
Located in London, Adelante currently manages $20 million in its sole fund, which invests in opportunities arising from potential credit events such as the lifting of an embargo or sanctions and debt restructurings.