Nevsky's Taylor Blames Algos in Closing $1.5 Billion Hedge Fund
- Fund's 18.4% annual gain since 2000 more than 10 times peers
- Fund expects to liquidate portfolio by the end of January
Are Equity Market Algorithms an Unfair Advantage?
This article is for subscribers only.
Nevsky Capital’s $1.5 billion hedge fund is shutting down, part of a growing trend among money managers following weak returns in 2015. What’s unusual is the reason the managers gave for folding: navigating markets driven by computers and index funds.
“We have come regretfully to the conclusion that the current algorithmically driven market environment is one which is increasingly incompatible with our fundamental, research orientated, investment process," Martin Taylor, the firm’s chief investment officer, said in a statement. “The bear market in emerging market equities, which began in 2011, may eventually engulf developed markets too.”