The directors of Nevsky Capital’s $3.3bn hedge fund are thought not to be actively planning to recruit replacement managers when incumbents Martin Taylor and Nick Barnes step down in 12 months.
The duo, two of the best known and most experienced long/short investors in emerging markets, have given shareholders 12 months' notice of their intention to step down from their hedge fund duties.
Taylor says the decision was "in the best interests of all shareholders [and] we look forward to continuing to manage Nevsky Capital's long-only mutual fund business with our team of emerging market specialists."
Michael Warren, investment director at Thames River Capital, of which Nevsky is an affiliate, says they will carry on running about $4bn in three long-only funds at Nevsky. One of these funds - focused on Global Emerging Markets - is closed to new investors.
Nevsky's hedge fund is also capped, having replenished assets early this year.
The hedge fund's directors said: "Whilst Martin's and Nick's enthusiasm for the fund's strategy remains, neither feels able to commit to managing the fund's portfolio with the intensity that they would wish to continue to provide, beyond March 2011."
It is believed the long/short portfolio can be liquidated in three days.
Nevsky is giving investors leeway to submit redemption requests for 31 March withdrawals, a redemption window otherwise closed.
Warren said the two wanted to stop running hedge funds "at the top of their game".
Nevsky is about 3% below its previous peak. It made 751% since launching in October 2000, an annualized return of 25.8%.
Taylor and Barnes will continue to run the soft-closed Global Emerging Markets fund. They will co-manage Nevsky's Asian, and Eastern European funds, too.
The long-only portion of Nevsky's business also has Howard Thomas, Katie Blackrock and Mike Sell as managers, focusing on different regions.
Charlie Porter, Thames River's chief executive, says: "Martin and Nick have built one of the most successful hedge funds in the industry, constantly delivering superior performance for investors in the decade that it has existed. Thames River Capital supports their decision and the action they are taking."
