Economics
Platt's Vision Faces Setback as BlueCrest Returns Cash
- Firm to manage employee money after client assets plunged
- Platt says he wants to use more leverage to lift returns
BlueCrest Returning $7B to Outside Clients
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Two years ago, billionaire Michael Platt managed one of the world’s largest hedge funds and told clients that he wanted to grow assets to $50 billion.
On Tuesday, those ambitions were set back when his $8 billion firm BlueCrest Capital Management announced that it’s returning all client money so Platt can focus on managing his wealth and that of his employees, including an internal fund that has sparked controversy. Declining fees, investor demands and the cost of hiring top traders have hampered profitability of hedge funds, BlueCrest said in a statement.