Oceanwood Capital Closes Fund at $2 Billion to Investors

Oceanwood Capital Management LLP, the London-based hedge fund run by Christopher Gate, closed its main Opportunities Fund to new investors after reaching $2 billion in assets, according to a letter to clients.

“We will continue to replace outgoing capital, honor existing capacity agreements and look to complete discussions with prospective investors that are near conclusion in the coming weeks,” the firm said in the letter seen by Bloomberg News. “Maintaining discipline in the overall fund size will allow us to maximize returns going forward.”

The main fund, with institutional investors including the Pennsylvania Public School Employees’ Retirement System and the School Employees Retirement System of Ohio, gained 1.3 percent in the year’s first nine months, according to a person with knowledge of the matter who asked not to be identified because the performance is private. It returned 25 percent and 22 percent in 2012 and 2013, respectively, the person said.

By comparison, hedge funds gained 2.3 percent on average in the nine months through September, according to Bloomberg’s Global Aggregate Hedge Fund Index. In 2013, hedge funds returned 7.4 percent on average, the index shows.

Oceanwood was founded in 2006 by Gate and an investment team from Tudor Investment Corp., according to the firm’s website. Gate, who is chief executive officer and chief investment officer, was previously with Goldman Sachs Group Inc.

“We are operating from a position of strength while much of the market may be de-risking their portfolios,” the firm wrote. “We have been extremely vigilant the past several weeks and have added to our higher conviction names as well as to names we think stand to rebound quickly if the market snaps back. The ability to hold fast and patiently add risk through the volatility should be rewarded.”

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