LionEye Shuts Hedge Fund Amid Losing Year for Event Strategies

  • Firm managed $1.7 billion of regulatory assets at end of 2014
  • Average event-driven fund down 2.3% this year through November

LionEye Capital Management, the investment firm led by Stephen Raneri and Arthur Rosen, is shutting its main hedge fund after losses, according to a person with knowledge of the matter.

The firm managed $1.7 billion of regulatory assets, a measure that can include leverage, at the end of last year, according to a filing. Rosalia Scampoli, a spokeswoman for the New York-based firm, declined to comment on its plans.

LionEye’s fund is shutting amid the worst year since 2011 for strategies that make wagers on corporate events like mergers, spinoffs and restructurings. The average event-driven fund lost 2.3 percent in the first 11 months of 2015, according to Chicago-based data provider Hedge Fund Research Inc. The average hedge fund across all strategies rose 0.3 percent during that period, while the Standard & Poor’s 500 Index gained 3 percent, including reinvested dividends.

FINalternatives earlier reported the closure on Dec. 7.

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