The Blowups Continue: LMR Shuts Down Two Funds After Bets On Volatility "Backfire"

London-based LMR Partners is shutting down two hedge funds in a bid to supposedly focus more on the firm's main funds.

One fund being shut down, the LMR Long Horizon Fund, is being liquidated after "bets on volatility backfired", according to Bloomberg. Which, of course, reminded us of the fund blowup that took place after a natural gas short squeeze back in 2018.

The other fund being shut down, the LMR Strategic Equity Fund, was up about 3% this year. There doesn't seem to be an explanation as to why this fund was shut down, though we guess it could be just for liquidity/deleveraging purposes.

The LMR Long Horizon Fund was managed by James Herlihy and the LMR Strategic Equity Fund was managed by Cedric Choffat. Between the two funds, they had about $300 million under management. Both managers remain employed by the firm and help run money for the firm's main hedge fund.