Hedge Funds

As Caxton’s flagship fund stumbles, investors redeem

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Caxton, the multistrategy hedge fund firm founded by Bruce Kovner, lost 24.5% of its assets during the second half of 2007 as poor performance led investors to redeem $1.5 billion. For the full year, investors pulled $2 billion from the firm, helping to bring its total assets down 15% to $12 billion from $14.2 billion.

Caxton’s flagship fund, Caxton Global Investment, reported a net gain of just 1.14% for 2007, according to investors. The macro-oriented multistrategy fund had a solid first half, putting it up 6.6% through June. But in July and August, the fund, like many of