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Bain Capital To Wind Down $2.2 Billion Macro Hedge Fund

Another one bites the dust...

Bain Capital is winding down its multi-billion-dollar Absolute Return Capital hedge fund, citing a “challenging” environment for macro trading. The private equity giant’s latest move highlights the ripple effects from this summer’s global financial market turmoil.

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Bain Capital's ARC down 14.8% this year

Bain Capital’s $2.2 billion Absolute Return Capital (ARC) manages assets in fixed income, equity, commodity and currency markets. In a letter to investors on Tuesday, the private equity giant said it is “winding down” the macro hedge fund and returning capital to investors. After logging three years of losses, the ARC fund was down 14.8% this year through August, marking its worst year since its inception in 2004. In contrast, the HFRX Macro/CTA Index was down 1.79% through Oct, 2.

Recently, ValueWalk highlighted how the global macro hedge fund index dropped in tandem with the S&P 500. For instance, the 2.09% decline on June 29 in the S&P 500 corresponded to a 2% decline in the HFRX Macro/CTA Index on a day-to-day...