Hedge Funds

MacKay Shields shutters credit fund

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MacKay Shields has shut down the $1 billion MacKay Shields Long/Short strategy following the departure earlier this year of Don Morgan, chief portfolio manager and head of the firm's $18 billion high-yield group. Morgan is thought to be considering the launch of his own hedge fund. Neal Goldman, a managing director who worked closely with Morgan at MacKay, has also left the firm.

The MacKay Shields Long/Short strategy was launched in October 2001, and over its life produced an annualized net return of about 12%. But the fund, like many others following fixed-income strategies, had a middling time of it last