(Bloomberg) -- Carlson Capital is shuttering its London office as part of a restructuring after the hedge fund’s assets dropped 90% to about $1 billion since 2016.

The Dallas-based investment firm applied to cancel its authorization with the UK regulator Financial Conduct Authority, meaning it plans to stop doing business there within six months.

London-based money manager Jesse Ho will relocate to Dallas, and the firm has given others an option to stay at the firm, according to a person with knowledge of the matter. 

The firm will retain its research and trading relationships in the region and will continue to invest in Europe, the person said, asking not to be identified because the details are private. 

Carlson previously closed offices in New York and Greenwich, Connecticut. Clint Carlson founded the firm in 1993, and it once managed about $9 billion.

A spokesperson for Carlson declined to comment.

In an industry increasingly dominated by large multistrategy hedge funds, many smaller investment firms have struggled. Hedge fund investors pulled more than $100 billion in each of the past two years, according to data compiled by eVestment.

Carlson’s assets shrank to $966 million as of Feb. 1, down from $5 billion in mid-2020 and as much as $9 billion in 2016, according to investor documents seen by Bloomberg. 

The firm’s flagship Double Black Diamond fund gained about 4% in 2023, the person said. 

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