Hedge fund BlueCrest to return $7bn as it closes to third party investors

Suite of funds to focus on partners and employees

Hedge fund BlueCrest is to return around $7bn of third party investor capital over the coming year as it becomes a private investment partnership focusing solely on managing assets for employees and partners.

Michael Platt's $8bn suite of funds will no longer accept investment subscriptions from third party investors, according to a statement released earlier today. Time for wealth managers to ditch hedge funds? Investors outside the company account for around $7bn of the company's assets, and are expected to receive 75% of redemption proceeds before the end of January next year and approximately 90% by the end of Q1 2016. The company said its decision to go private came as a result of recent developments in the industry, including downward pressure on fee levels and the increasing cost...