(Bloomberg) -- Camares Capital LLP, a hedge fund started by former Deutsche Bank AG traders in 2013, is liquidating, according to two people with knowledge of the matter.
The London-based firm managed about $500 million and is in the process of returning capital to investors, said the people, who asked not to be identified because the information isn't public. A representative for Camares Capital declined to comment.
Antoine Cornut, who led flow-credit trading in the Americas and Europe at the Frankfurt-based bank, started the hedge fund in 2013 with backing from Reservoir Capital Group LLC and Saba Capital Management LP, people said at the time. Askin Aziz and Julien Marie, both former Deutsche Bank employees, joined Camares Capital as partners.
The closing comes as the hedge fund industry is shrinking in Europe where poor returns, the mounting cost of regulatory compliance and investors' reluctance to allocate capital has led to more hedge funds shutting than starting since 2015.
About 530 hedge funds have closed in the region since the start of 2015, while only 452 have started, according to Eurekahedge data. The industry is dominated by managers overseeing less than $100 million and they are struggling to remain afloat. The Eurekahedge index for European hedge funds declined 1 percent through August this year, underperforming a 2.8 percent rise in a gauge that measures returns for global peers.
To contact the reporters on this story: Nishant Kumar in London at nkumar173@bloomberg.net, Matthew Campbell in London at mcampbell39@bloomberg.net. To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Michael Shanahan, Simone Meier
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