Hedge Fund Frontlight Capital to Close Doors
Four other hedge funds announced earlier this month that they were shutting
Boston-based Frontlight Capital LP is shutting after fewer than three years in operation, people familiar with the matter said.
Four other hedge funds announced earlier this month that they were closing, as investors re-evaluate a once-highflying industry plagued by weak returns.
Through September of this year, Frontlight’s fund, Frontlight Enhanced Macro Master Fund I, L.P., lost 4.17%, according to a document reviewed by The Wall Street Journal. The fund lost 5.6% last year. The firm managed about $280 million, the document said.
Frontlight deployed a macroeconomic investing strategy, meaning it made bets on macroeconomic factors including interest rates.
The firm was launched by Edward DeNoble, who previously worked at Jack Meyer’s Convexity Capital Management. Mr. DeNoble founded Frontlight in 2015. Its master fund began investing the following year, according to the document.
A spokesman for Frontlight didn’t immediately have a comment.
During his time at Convexity, Mr. DeNoble was considered a top trader who for years pushed for more of a “macro” approach that would take views on the direction of rates instead of one that was agnostic about their future path, people familiar with the matter previously told The Wall Street Journal.
Mr. Meyer and his co-founders, former Harvard bond traders David Mittelman and Maurice Samuels, ultimately decided they were uncomfortable making such trades, where they felt Convexity had little competitive advantage, The Wall Street Journal previously reported.
Mr. DeNoble left Convexity and later started Frontlight.
The firm is the latest of several hedge fund firms to shut down. Tourbillon Capital Partners LP, Highfields Capital Management and Criterion Capital Management recently announced they would return billions of dollars to clients.
SPO Partners and Co. announced it was closing last week, according to a letter to clients seen by The Wall Street Journal.