(Bloomberg) -- Dharmesh Maniyar is shutting down his eponymous hedge fund because of declining assets under management after redemption requests.
The money manager, who traded for hedge fund titans such as Paul Tudor Jones and Alan Howard, will redeem all investors in the fund on Oct. 1, according to an investor letter seen by Bloomberg News.
“We believe this decision is in the best interests of all investors, ensuring fair and equal treatment in light of the fund’s impending AUM decline due to recent redemption requests,” Maniyar wrote in the letter.
Maniyar started trading for his own hedge fund in 2020 after spinning out from Tudor Investment Corp. and was one of the biggest launches of that year, with startup capital of $1.4 billion. The initial capital included backing from Jones.
Maniyar is among a slew of hedge funds closing down as investors migrate to bigger, multistrategy investment firms that rely on teams of traders to make money. More than 3,100 hedge funds have shuttered since the start of 2019, exceeding launches, according to data compiled by Hedge Fund Research.
Macro hedge funds have struggled to post returns amid a volatile interest-rate environment. Many got hit last year as a few US regional lenders, including Silicon Valley Bank, collapsed.
Maniyar, too, lost money and tried to recover, but the decline in assets meant it was no longer viable to run the operations, according to a person with knowledge of the matter who asked not to be identified because the details are private.
Born in the Gujarat state of India, Maniyar moved to the UK in 2003 to pursue his PhD in machine learning from Aston University. He joined Tudor in 2013 after working at Brevan Howard Asset Management and helped Jones to develop new computer models as part of a quantitative revamp of the firm’s traditional investing approach. He launched a dedicated fund under Tudor in 2017 before spinning out.
The fund combined quantitative strategies and discretionary trading to invest across G-10 and major emerging markets, with Maniyar making final investment decisions.
(Updates with additional context starting in the fifth paragraph)
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