Taconic Shuttering Flagship Hedge Fund in Broad Shakeup

In a major overhaul, Taconic Capital Advisors is shuttering its $1.8 billion flagship multistrategy hedge fund, spinning out its European credit strategy and reworking its C-suite.

The changes will slash Taconic’s $4.5 billion of assets and shift it from trading across multiple strategies to concentrating on North American credit and merger arbitrage — its two strongest areas, according to a letter sent to investors Friday.