Perbak Capital Partners, a London-based hedge fund backed by Schonfeld Strategic Advisors, is winding down operations after concluding that its asset base had not grown sufficiently to support the long-term resilience of the business, according to a report by Bloomberg.
The firm, which managed roughly $1.1bn including capital from Schonfeld, informed investors it would return assets in June following what chief investment officer Martin Stapleton described as a “too-short” operating run.
Perbak specialised in short-focused equity strategies and launched in early 2021 with backing from Schonfeld as part of a broader industry trend of seeding specialist hedge fund managers.
In a letter to investors seen by Bloomberg, Stapleton said that although the firm had delivered a strong performance record, assets under management had failed to reach a level that would provide the “significant financial buffer” needed to maintain operational robustness and protect the business during periods of market stress.
The closure highlights mounting pressure on smaller and mid-sized hedge funds as institutional allocators continue concentrating capital with the largest multi-strategy platforms, many of which have benefited from scale advantages, diversified revenue streams and growing demand for stable infrastructure.
Perbak operated two market-neutral equity strategies: a discretionary fund overseen by Stapleton and a systematic strategy managed by Ciarán Ryan. According to the investor letter, the discretionary Perbak Global Market Neutral Fund generated a net return of 21% over approximately 4.6 years despite what the firm described as expensive growing pains during its buildout phase.
The decision adds to a broader wave of hedge fund closures and consolidation across the industry, particularly among emerging managers competing for institutional allocations in an increasingly crowded and operationally demanding environment.
Representatives for Perbak and Schonfeld reportedly declined to comment on the closure.
