Boundary Creek Advisors, a New York-based credit hedge fund founded by former BlueMountain Capital Management traders, is returning part of its capital to investors as it looks to shrink its asset base following three consecutive years of losses, according to a report by Bloomberg.
The reports cites unnamed sources familiar with the matter as revealing that the firm, led by Peter Greatrex, has initiated a partial mandatory redemption in recent months. As part of its restructuring, Boundary Creek will shut down its London investment operations, reducing costs while managing a smaller fund.
The hedge fund’s assets under management (AUM) have fallen below $1bn, down from a peak of nearly $2bn, and that figure is expected to decline further following the cash return, one source noted.
After launching in 2019, Boundary Creek was initially profitable when managing a smaller pool of capital. However, the fund posted a 7% loss in 2023, followed by an 8% decline in 2024, continuing a streak of underperformance.
Despite winding down its London office, Boundary Creek will continue to invest in select European opportunities from its New York base, according to sources. The fund primarily trades bonds and credit derivatives, taking long and short positions in high-yield US and European companies.
