New York Hedge Fund Brenner West to Close
Stock-focused fund is latest to call it quits in a string of recent shutdowns
Brenner West Capital Partners is closing after 13 years in business, according to people familiar with the matter, the latest hedge fund to close in a tumultuous year for the industry.
The New York-based fund was founded in 2005. The firm, which invested primarily in value stocks, is owned by Craig Nerenberg and Joshua Kaufman, according to a regulatory filing. The fund gained about 24% last year, some of the people familiar with the fund said.
Brenner West’s more recent performance wasn’t immediately known. The firm managed more than $900 million, according to a regulatory filing in March.
The closure is just the latest in a string of recent shutdowns.
Earlier Friday, Dallas-based hedge fund Brenham Capital told clients it was closing, a casualty of what founder John Labanowski called “some truly bizarre stock action” in the energy stocks the fund traded.
Last month, three funds announced their closures in less than a week. They included Tourbillon Capital Partners LP, Highfields Capital Management and Criterion Capital Management.
The closures marked the latest in a multiyear re-evaluation of hedge funds by fund managers and their investors.
Some funds have closed amid rising skepticism about the value of paying hedge funds’ high fees. Hedge funds often charge a 2% management fee and take a 20% cut of performance gains. Other funds have been hurt by poor performance relative to a stock market that has notched nearly a decade of gains.