Nevsky Capital's Martin Taylor and Nick Barnes are to resign their duties on the firm's flagship emerging markets hedge fund in 12 months' time.
Taylor, Nevsky's chief investment officer and founder, and Barnes, a partner, will still run Nevsky Capital's Global Emerging Markets long-only fund, and two Ucits-compliant funds focused on Eastern European and Asian equities. In aggregate these funds hold about $4bn.
Neither manager is joining a rival group.
The directors of Nevsky's hedge fund say: "The fund has received 12 months' notice that both [managers] will cease to provide investment management and advisory services...from 3 March, 2011."
Taylor and Barnes have worked at the affiliate of Thames River Capital since 2000 and 2001 respectively.
Nevsky's hedge fund made about 780% since launching in 2000 while the group runs about $7.5bn in emerging markets.
The flagship fund's directors say: "Whilst Martin's and Nick's enthusiasm for the fund's strategy remains, neither individual feels able to commit to managing the fund's portfolio with the intensity that they would wish to continue to provide, beyond March 2011.
"Given the highly specialised nature of the fund's mandate and the central role that Martin and Nick fulfil in this regard, neither the manager nor the investment adviser believe they are able to offer the fund alternative management arrangements from within the manager or the investment adviser."
The directors have the option of seeking alternative managers, or winding the fund down.
Michael Warren, investment director at Thames River, says the directors felt it wise to give investors in Nevsky's flagship 12 months' notice, rather than inform them later.
He says: "The managers want to stop while they are at the top of their game and when their energy levels are high. The fund is about 3% below its high water mark."
