Meditor Capital Management Ltd., the $3 billion hedge fund-firm run by Talal Shakerchi, is shutting its European equity fund, citing an internal review and new rules restricting short-selling.
The firm, based in London, said it can liquidate most of the fund within a “few weeks,” according to a note sent to investors today. Shakerchi said he plans to spend more time on philanthropy.
Meditor determined after its review that the firm should eliminate “carve outs,” in which individual money managers have control over portions of the fund, according to the letter. The decision will reduce how much money the firm can manage, Meditor said. At the same time, European rules that require hedge funds to disclose their bearish bets against companies have hurt the firm, according to the letter.
“These rules disadvantage larger managers who actively short like Meditor,” Shakerchi, 49, wrote in the letter, which he provided to Bloomberg News. “We are no longer confident that we can continue to offer good value to our clients on our current scale.”
The firm has generated annual returns of 13 percent since its inception 15 years ago, according to the letter. It posted a gain of about 16 percent this year, according to another note provided by the firm.
“I am grateful to have worked for so long with such a dedicated and focused group of individuals, all far removed from the popular media depiction of those engaged in our industry,” Shakerchi said.
Shakerchi, who previously worked at insurer Old Mutual Plc, competes in poker tournaments. He lost more than 850,000 pounds ($1.3 million) at the European Poker Tour in Monaco, the U.K.’s Independent newspaper reported in May, citing the Times. He had won more than 1 million pounds in tournaments in the last few years, the newspaper said.