Pine River Master Fund Said To Close Amid Redemption Wave

Sep 18 2017 | 10:45pm ET

After a dramatic surge of redemptions that would bring assets under management to less than $300 million, Pine River is reportedly closing its multi-asset master fund.

The news was first reported by Bloomberg on Monday morning, citing unidentified individuals familiar with the plans.

The fund had approximately $3 billion in AUM in July 2016 and began dropping assets thereafter. Pine River has been restructuring its business since the AUM peak, shuttering its $1.6 billion fixed-income fund after the departure of co-manager Steve Kuhn in the spring of 2016 and has announced plans to spin off Renos Dimitriou’s $1.7 billion government bond-trading fund into a separate entity. 

Managers of the master fund decided to close the vehicle as withdrawals threatened to raise the percentage of illiquid assets as a proportion of the overall portfolio to undesirable levels, the Bloomberg article continued. A plan to move the less liquid positions to a side pocket was ultimately dismissed in favor of closing. 

The multi-strategy master fund was reportedly up 1.7% for the year to date through August, was minimally positive last year, and lost 2.75% in 2015. 

Despite the closure, Pine River as a whole still manages $1.5 billion in SMAs and $4.1 billion across two REITs. The company managed some $15 billion in 2015.

Based in Minnesota, Pine River was founded in 2002 by Brian Taylor, Jeff Stolt, Aaron Yeary, and Nikhil Mankodi.

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