A hedge fund that is less than three years old is shutting down its business after its European investments went sour.
MeehanCombs LP, a Stamford, Connecticut-based firm focusing on stressed and distressed credits in the U.S. and Europe, saw assets under management decline by about one-third from a peak of $300 million last year, President Eli Combs said Monday in a telephone interview. The fund was down about 6 percent in 2014 and 7 percent this year.
The fund, which was started in March 2013, suffered from losses on corporate debt bets as a slow economic recovery in Europe weighed on investments such as banks, Combs said. The firm’s management decided to shut down the business by the end of this month after clients asked to redeem about half of their capital in August.
"The bottom line is we have to make those tough decisions in order to do the right things for our investors," Combs said.
The Wall Street Journal reported the shutdown earlier Monday.