Bloomberg News reports that Seneca Capital Investments, which managed about $500m, is returning most capital, according to a client letter obtained by Bloomberg. Seneca, which made wagers on corporate events such as mergers, spinoffs and restructurings, a strategy called event-driven, said it lost 6% this year in its domestic fund.
“I am no longer able to continue making the commitment and sacrifices required to run outside capital,” Hirsch said in the December 21 letter. “Despite negligible redemption requests and increasing market opportunities that are the result of a challenging year in event-driven investing, I cannot in good faith start next year with the dedication required to manage your capital.”
Seneca is returning money amid the worst year since 2011 for event-driven funds, which on average declined 2.3% through November.
To access the complete Bloomberg News article hit the link below: