Fund launches & closures Hedge Funds

Magnetar shutters London risk arb operation

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Alec Litowitz’s Magnetar Capital has pulled the plug on the London desk of its risk arbitrage operation, eliminating seven jobs.

Litowitz, the former equities chief for Citadel Investment Group, garnered significant investor attention when he raised roughly $1.7 billion for his 2005 launch of Chicago-based Magnetar, which had grown its assets to $8 billion by the end of 2008.

Like many of its peers, however, Magnetar had a hard time navigating the market last year and put up its gate in December after losses in its multistrategy Magnetar Capital fund triggered numerous redemption requests.

As a result of