Gulati's Hedge Fund Becomes Victim of Too-Calm Markets

  • $940 million-Argentiere Fund is returning capital to investors
  • Firm to continue managing $250 million with other strategies

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The lack of market volatility -- or swings in the prices of securities -- has claimed one of its most high-profile victims.

Argentiere Capital is returning capital to investors from its flagship $940 million hedge fund after years of unsuccessful wagers on rising market turmoil, according to a person with knowledge of the matter.