After big losses Bain Capital is liquidating its Absolute Return Capital hedge fund.
Founded on May 2004. Absolute Return Capital, LLC is a Boston, MA-based investment advisory and hedge fund firm. The firm is the global macro affiliate of Bain Capital LLC..
The hedge fund, run by Jonathan Goodman and Jeff Woolbert, had about $2.2 billion in assets as of Aug. 1, including $552 million of internal money, according to an investor presentation dated August 2015. The fund was down 13 percent this year through July, which would be its worst year since inception in 2004.
Absolute Return Capital, LLC (ARC) seeks to identify fundamental interactions within and across asset classes that are typically relating to business cycle, momentum, demand and supply and valuation. The firm employs both qualitative and quantitative approaches for its investment process, emphasizing on the relative value between markets. The investment strategies are primarily designed to be market neutral.
Jonathan J. Goodman is a managing director and portfolio manager at Absolute Return Capital, LLC. Prior to joining the firm in May 2004, he was a principal and portfolio manager at Bain Capital, LLC from 1995.
Jeffrey Woolbert is a managing director and portfolio manager at Absolute Return Capital, LLC. Prior to joining the firm in May 2004, he served as a principal at Bain Capital, LLC from 1998.
The fund lost money in each of the past three calendar years and was down an annualized 8 percent over the past three years through July, a period in which U.S. stocks rose at an 18 percent rate and hedge funds on average returned 6.1 percent a year.
Bain’s absolute return fund started as a personal investment vehicle for employees and sits within the capital markets alternative investing business, which oversaw $34.7 billion as of March 31. The division also includes Brookside, a long-short hedge fund unit, and Sankaty Advisors, a credit arm.
Bain Capital, co-founded by former U.S. presidential candidate Mitt Romney, oversees about $75 billion in private equity, venture capital, credit and hedge fund assets. The firm’s private markets division, made up of private equity and venture capital, managed $42.5 billion in assets as of March 31, according to Bloomberg.