The president of struggling $2 billion hedge fund Hutchin Hill Capital is set to depart

  • Matthew Edmonds, the president of hedge fund Hutchin Hill Capital, is set to leave next month, according to people familiar with the matter.
  • The fund has struggled in 2017, with the flagship fund down 3.1% at the end of August.
  • The firm decided to close its long/short credit portfolio, and cut back on staff.

Matthew Edmonds, the president of $US2 billion hedge fund Hutchin Hill Capital, is set to depart after a difficult year for the firm, people with knowledge of the matter said.

Edmonds has been in his position since 2014. Edmonds couldn’t be reached for comment. His departure follows a tough run for the firm, which was started by Neil Chriss, a former managing director at SAC Capital.

The firm’s flagship fund was down 3.1% at the end of August, according to a September investor letter seen by Business Insider. The poor performance was driven by the firm’s fundamental long/short credit portfolio within fixed income and currencies, with the equities and macro books delivering returns of 1% and 1.5% respectively.

“Starting from early February of this year we experienced our largest Credit drawdown in the history of the firm, specifically within the Long/Short Credit portfolio,” Chriss said in the letter.

As a result, the firm “eliminated” the credit portfolio, according to the investor letter, and cut staff. It also focused resources on its top-performing teams in its quantitative, macro and equities units.

“We have made a number of pro-active decisions to focus Hutchin Hill on our highest conviction performers across the investment teams to get our performance where we expect it to be,” the letter said. “I’m very confident that the decisions we have announced today will help us achieve our performance goals.”

The firm now has around $US2 billion in assets, according to a person familiar with the matter. It had $US2.8 billion at midyear, according to a ranking from Absolute Return.

The firm’s diversified alpha master fund returned 4.6% last year, according to HSBC data. The firm launched in 2008 with $US300 million from billionaire James Simons, founder of Renaissance Technologies.

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