Investment giant Brookfield is shuttering its $1 billion multi-strategy hedge fund
- Investment giant Brookfield is closing its hedge fund group BHS Advisors.
- The multi-strategy fund launched in 2019 and managed $1.3 billion in assets earlier this year.
- The fund had 66 employees earlier this year, including 38 investment professionals.
Brookfield Corporation, a Canadian asset management behemoth, is closing its multi-strategy hedge fund Brookfield Hedge Solutions Advisors.
According to people familiar with the matter, BHS Advisors, a multi-strategy hedge fund platform within the $825 billion conglomerate, is winding down after four years. According to a March securities filing, it had 66 employees, including 38 investment professionals, and managed $1.3 billion in assets.
A spokesperson for Brookfield confirmed the decision, saying, “We decided to wind down the fund in order to focus on other products.”
The decision to close the group, which was founded in 2019, was first reported by With Intelligence, which cited sources who said the fund was having difficulty scaling the business.
In recent years, billions of dollars have poured into multi-strategy hedge funds such as Citadel, Millennium, and Point72, which employ teams of traders across multiple strategies. These funds aim to tighten risk management in order to provide a more diversified approach with lower volatility. However, as more firms adopt the strategy, the competition for investment talent and investor capital has become more intense.
BHS was expanding just over a year ago, with plans to open a London office in early 2022, according to the Financial Times.
