Former Goldman Sachs co-chairman, ex-US senator, and governor of New Jersey, Jon Corzine, is to shutter the hedge fund he started after the collapse of MF Global Holdings, and return cash to investors, according to a report by Bloomberg.
The reports cites the US Securities and Exchange Commission’s (SEC) website as revealing that JDC-JSC, Corzine’s New York-based money-management firm, terminated its registration with the SEC as of 22 September. The firm’s only investment vehicle, the JDC-JSC Opportunity Master Fund, had gross assets of about $510 million, including leverage, at the end of last year.
In an emailed statement to Bloomberg, Corzine, 76, said: “I have decided to wind down the Opportunity Fund and return capital to my investors. I am grateful to our team for their hard work and dedication during the past several years.”
Having taken over as the boss of futures broker MF Global in 2010, Corzine saw his plan to transform the business into a major Wall Street player collapse under a cash crunch tied to proprietary bets on European sovereign debt, with MF Global filing for bankruptcy in 2011.
In 2018, Corzine began raising cash for JDC-JSC having secured an exemption from the Commodity Futures Trading Commission (CFTC) that allowed him to continue trading a small amount of futures following MF Global’s collapse. In July, three futures industry executives reportedly asked the CFTC to review that exemption claiming that Corzine was no longer eligible because of a 2020 rule change.