Five Mile Capital Partners, the hedge fund and private equity firm founded by a group of fixed-income veterans led by Lewis Ranieri, has shut down its Housatonic arbitrage fund following poor performance.
Following the closure in March, Mason Haupt, the mortgage-backed and asset-backed specialist who ran it, left the firm. Five Mile has also returned all of the fund's $105 million of assets to investors.
Five Mile launched Housatonic in 2004, and over its life, the fund netted an annualized return of just 2.24% - far less than its targeted 8% to 12%. Its return this year was