PEA Capital, formerly PIMCO Equity Advisors, has pulled the plug on its hedge fund business. The group managed two equity hedge funds until November 2003, when it began liquidating them in order to concentrate on its core long-only equity business. Apart from a rather small amount of capital - a total of $35 million in combined assets - the funds both returned positive numbers.
The firm's decision to close the funds is timely, considering recent talk about regulation from Capitol Hill. The three portfolio managers who were responsible for the two hedge funds all manage other mutual funds