- EPIC fund bet on Targa Resources, Energy Transfer, Williams
- Halcyon, which had controlling stake, runs almost $10 billion
Halcyon Capital Management, which runs almost $10 billion in assets, has shuttered its energy-focused hedge fund after the collapse of oil prices.
The Energy, Power and Infrastructure Capital Fund and its manager, Halcyon Energy Investors, were closed on March 31, according to two people familiar with the matter who asked not to be named because the information is private. Concerns over the ability to raise assets for the fund contributed to the decision, the people said. At its peak, the fund managed $140 million, one of the people said.
Oil prices have plunged more than 50 percent since the downward spiral began in June 2014, hitting companies highly exposed to commodities. Energy-focused equity funds fell 6.5 percent in 2014 and almost 14 percent last year before rallying about 9 percent this year through April, according to Hedge Fund Research Inc.
New York-based Halcyon Capital Management owned a controlling stake in the management company. Scott Tagliarino, managing partner at ASC Advisors, which handles communications for Halcyon, declined to comment.
The fund and management company were run by a three-person team: Chief Investment Officer Jim McGinnis, partner Paul Torgerson and associate Travis Bartlett, who left in October 2015, according to his LinkedIn profile.
The EPIC fund had its largest net long exposure in the midstream energy sector, McGinnis told Bloomberg Brief in August 2014, as oil prices began their descent.
"We’re at a point where well-capitalized and well-run midstream providers, such as Targa Resources Corp., Enterprise Products Partners, Energy Transfer Equity and Williams Cos., have a comparatively strong negotiating position with their clientele," McGinnis said at that time.
The fund exited most of its midstream positions by the first half of 2015, according to one of the people. From the end of August 2014 through June 2015, Targa fell about 35 percent while Energy Transfer rose about 8 percent.
The fund was all in cash at the end of the first quarter, one of the people said.