London-based hedge fund firm Meditor Capital Management is shutting down its European equity fund.
Bloomberg reported that Meditor can liquidate most of the fund in the next several weeks. The closure was prompted following the firm’s decision to eliminate “carve outs," which will reduce how much money the firm can manage, as well as new rules restricting short-selling.
Meditor founder Talal Shakerchi explained to investors in a letter that the "new rules put larger managers who actively short like Meditor” at a disadvantage.
The firm has generated annual returns of 13% since its inception 15 years ago,
Meditor manages approximately $3 billion in assets under management.