Hedge Funds

Once $4.3 billion, DKR falls to $40 million

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The firm says operations will continue. Two quantitative funds remain.

DKR Fusion Management, which once managed $4.3 billion in multiple strategies, is down to $40 million after nearly $500 million in redemptions this summer.

This year’s asset drop marked just the latest setback in DKR’s long, slow decline. The firm was founded by Drexel Burnham Lambert alumni Gary Davis and Barry Klein in 1992 as part of the AIG Trading Group, which bought Drexel’s trading platform when the junk bond powerhouse imploded. Known as DKR Capital, the company was first run as a traditional fund of funds before bringing its own traders in-house in 1994. In 2000,