(Bloomberg) -- Douglas Haynes, a former president at billionaire Steve Cohen’s Point72 Asset Management, has dropped plans to start his own hedge fund because of difficulties raising enough capital.
Haynes and his team planned to start Norias Research Group this year that was designed to back investment ideas churned out by analysts instead of hiring pricey portfolio managers. The move was meant to capture the soaring demand for multistrategy hedge funds.
“We were unable to secure a sufficient base of day one investors to launch,” Norias told potential clients in a letter seen by Bloomberg. The letter noted that Norias had already built a staff of 30 professionals and developed its trading infrastructure before deciding to pull the plug.
A representative for the firm confirmed the contents of the letter.
Haynes decision to abandoned the launch shows how difficult it is to start a hedge fund as investors migrate to the largest and best-established money managers. More than 3,100 hedge funds have shuttered since the start of 2019, exceeding launches, according to data compiled by Hedge Fund Research.
©2024 Bloomberg L.P.
