Anandar Capital Fund Liquidates After Partner Disagreement

  • Firm led by ex-Magnetar money managers oversaw $530 million
  • Co-founder Htoo told investors of closure in letter last month

Anandar Capital Management, the hedge fund started by former Magnetar money managers Min Htoo and Jordan Teramo, is returning money to investors, according to a letter obtained by Bloomberg.

The liquidation of the New York-based firm is due to a disagreement between the partners, said a person with knowledge of the situation, without providing details. The person asked not to be named because the information is private.

“It is with thoughtful resolution that I inform you of my decision to conclude our Anandar effort," Htoo, the firm’s chief investment officer, wrote in the July 8 letter. “Though this has been an exceedingly difficult decision to make, I have conviction that it is the correct path as your fiduciary."

Teramo declined to comment on the closing, as did Htoo.

Anandar, which wagered on corporate events through stocks and bonds, grew quickly after its start in July 2014 and amassed $530 million in assets, including leverage, as of March, according to regulatory filings. The firm had already begun liquidating some of its holdings when the letter was sent.

Event-Driven Returns

Investors have lost desire for event-driven strategies after they’ve lagged behind the average hedge fund in the past two years. In the second quarter, investors pulled $3.6 billion from event-driven funds, data from Hedge Fund Research Inc. show.

Anandar’s closure was not related to performance, the person said. Since inception, the main fund had lost less than 6 percent.

Htoo, who grew up in Myanmar, came to the U.S. on a scholarship and attended Brown University, according to a biography. He was a partner at Magnetar before leaving to start Anandar in 2014. Teramo had also been at Magnetar from 2012, after working at Brigade Capital Management from 2006 to 2011.

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