One of America's top hedge-fund managers has returned money to investors. Since Louis M Bacon founded Moore Capital Management in 1989, his record has seen him linked to famous names such as George Soros. But in the last few years Bacon has struggled, something he blames on European politicians.
"The political involvement is so extreme we have not seen this since the postwar era. What they are doing is trying to thwart natural market outcomes," says Bacon in The New York Times. "It is amazing how important the decision-making of one person, Angela Merkel, has become to world markets."
Bacon ended 2011 down 2% and was only 0.35% up in the first six months of 2012. That compares to an average annual return of 18% since 1990. So he's decided to hand back about 25% of the $8bn in funds that he manages to investors.
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But the 55-year-old Anglophile, who splits his time between New York and London, is not throwing in the towel just yet. "I have underperformed market opportunities, so yes, I have questioned myself a little bit," he says. "But I do think I can ultimately adapt to a changing market environment." With around $6bn left to play with, his investors will be hoping he's right.
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