A wave of hedge fund closures is unfolding as extreme market volatility and geopolitical tensions take a toll on performance and liquidity. Several funds are shutting down or returning capital to investors after sustained losses across asset classes.
Veteran firm Eminence Capital is closing after 27 years of operations, marking one of the most notable exits in the industry. The firm says it plans to return at least 75% of assets to investors by mid-to-late June. Meanwhile, Mars FX Hedge Fund has reportedly lost around $600 million in assets, highlighting the scale of recent drawdowns.
Other closures include Alua Capital Management, which is winding down a $2 billion fund after weak performance, and AllianceBernstein, which has shut its AB Arya hedge fund for similar reasons. The coordinated exits reflect mounting pressure across strategies, particularly in macro, FX, and leveraged positions.
Analysts say the current environment marked by rapid cross-asset swings, geopolitical shocks, and liquidity stress is exposing vulnerabilities in hedge fund models. As volatility persists, more funds could face redemptions, forced unwinds, or closures, raising broader concerns about stability within alternative asset management.
