Hedge Funds

Ritchie to shutter energy fund


Ritchie Capital is planning to close its troubled Ritchie Energy portfolio after having received redemption requests that represented most of the fund’s capital.

According to a letter sent to investors by firm founder A.R. Thane Ritchie on November 6, “the Energy Fund cannot continue to operate in the ordinary course and must return capital to Investors as promptly as possible.”

Ritchie Energy was hit hard in 2005 following a dramatic change in the correlation between natural gas volatility and power volatility, which forced the fund to liquidate some large positions. The fund gave up 16.8% in August 2005 to