Highbridge Capital Management is making some big changes after its long/short equity fund reported lackluster performance in 2011.
The Highbridge Capital fund which is managed by Glenn Russell Dubin, has laid off three senior executives, including two portfolio managers, and at least three analysts and traders as the long/short fund continues to struggle according to AR Magazine. The dismissals were centered on Highbridge Capital Management’s $1.8 billion long/short equity fund, which is down 12.6% so far this year.
Jennifer Failla, a portfolio manager who covered the retail sector, Chris Storey, an analyst who covered financials and Don Kuzoian, an analyst who covered the technology sector, were amongst those dismissed.
Highbridge’s long/short equity fund wasn’t the only fund to lose money this year. Hedge fund performance in November was disappointing at best. In fact, hedge fund performance was more disappointing than any time since the end of the Lehman Brothers (see more details here). Hedge funds have failed to deliver impressive returns, and it becomes more difficult for them to bet or remain their previous earns. At the same time, the market was roughly level through the first 11 months of the year, losing just 0.21% from January 1 to December 1. Changing up fund staff is the next logical step with fund performance falling so far below market performance. The only question is how many other funds will change things up for the new year.