Liongate Capital Management Closing, Will Return Investor Capital

Oct 16 2015 | 8:53am ET

London’s Liongate Capital Management is shutting down.

At one point managing north of $3.4 billion, Liongate’s assets have fallen under $500 million, according to the Wall Street Journal citing a person familiar with the matter, and the firm has begun returning cash to investors. 

Liongate was founded in 2003 by Randall Dillard and Jeff Holland in 2003 as a fund of hedge funds. It offers a flagship fund, the Liongate Multi-Strategy Fund, as well as custom portfolios for investors via separately managed accounts. It performed well through the financial crisis, gathering $800 million in assets in 2008 and some $300 million during a six-week period in mid-2009 as investors fled blemished or underperforming funds. 

Insurance company Principal Global Investors bought a majority stake in Liongate in 2013 for $44 million.

However, Liongate has faced headwinds in recent years as fund-of-hedge-funds lost favor among institutional investors, and both Dillard and Hollard left the firm in March 2015 in a shakeup that resulted in Liongate president and former Principal executive Tim Stumpff taking the reins. 

Principal reportedly wrote down its investment in Liongate late last year. 

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