Bloomberg News reports that Lim’s Hong Kong-based Guard Capital Management, one of Asia’s most successful hedge fund startups, decided to close its $873 million macro hedge fund after a 5.1 percent loss in 2016 and another 4 percent retreat in the first quarter of this year.
In the first media interview since he announced the move to investors, Lim, 41, said an “intense” analysis of the fund’s disappointing performance led him to believe that the investment team’s setup wasn’t ideal. He’s reflecting on the mistakes he made building the team and thinking about how he can improve his approach.
“The only moral thing to do if you are not 100 percent sure you are optimized is to give the money back while you re-assess, even if the business itself happens to be profitable,” Lim said, who declined to disclose details of trades that backfired.
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