Kamunting Capital, formerly a $ 1 billion hedge fund, is shutting down.
The hedge fund bet on energy junk bonds over the past year, and lost its some of fortunes as oil crashed, according to the Wall Street Journal’s Rob Copeland.
The fund lost 4% last year and was down 2% so far this year; since it opened in 2004, the fund had returned its clients around 8% a year after fees.
The fund is headed by Allan Teh, who previously ran a now-defunct hedge fund unit at Citi before leaving to start his own hedge fund in 2004.
He will now return to managing his wealth privately, The Journal reported.
Oil prices have declined by about 50%. Here’s the drop.