French hedge fund Capital Fund Management (CFM) has returned approximately $2bn from its flagship Stratus fund to investors, reflecting a surge in assets under management at the firm, according to a report by Bloomberg.
The firm’s total assets peaked at $21bn in September, before it began returning capital. The decision reflects capacity constraints for the Stratus fund, with the firm focused on protecting performance, before it can look to expand again.
Stratus, which is currently closed to new investors, is a multi-strat fund trading short-term futures, statistical arbitrage and volatility. CFM raised its performance fee from 20% to 30% last year, while competitors were typically facing pressure to lower costs.
