(Bloomberg) -- Weiss Multi-Strategy Advisers LLC, a New York-based investment management firm started in 1978, is winding down its operations. 

“Every journey has twists and turns, and after careful consideration of various factors and circumstances, I have arrived at the difficult decision to conclude this journey,” George Weiss, the firm’s founder and chief executive, wrote in a letter to clients and partners.

Weiss, 81, said the firm has “diligently wound down the vast majority of client portfolios.”

A representative for the firm declined to comment.

Multi-strategy funds deploy multiple teams to manage money across various investment strategies.

Weiss managed $3.1 billion as of mid-2023, according to With Intelligence, which earlier reported the plan. The fund gained 6% in 2023 following a 0.6% loss in 2022, the trade publication said, with the average multi-strategy, multi-manager fund up 8% last year.

Jordi Visser, the firm’s chief investment officer, joined the firm in 2005. He previously ran a macro portfolio at Weiss before taking on the top investment role. As of March 2023, Weiss employed 119 people, of which 61 were investment professionals, according to an SEC filing. 

A Goldman Sachs report last month found investor appetite for almost every hedge fund strategy this year has diminished from 2023, which was already the weakest year on record for gross inflows.

The report found that investor interest in multi-strategy funds is waning after peaking in 2023, with 16% of those surveyed saying they plan to allocate to the strategy, versus 31% last year. Meanwhile, 7% of clients said they plan to redeem this year, up from 4% in 2023.

“We believe that strong multiyear flows into the strategy, combined with somewhat softer performance last year, are driving this fall in interest,” Goldman wrote.

--With assistance from Mark Bergen.

(Adds background of firm in seventh paragraph.)

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