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The Morning Brief: Citadel Alum's RoundKeep Capital Calls It Quits

Here is shocking news: Of 14 asset classes, hedge funds were the worst performer from 2003 to 2011, at least according to one index. The HFRX Global Hedge Fund Index posted a puny 1.4 percent annualized return during that nine-year period, compared with a gain of 16.3 percent for the MSCI Emerging Markets Index, 11.3 percent for the MSCI EAFE Value Index, 10.9 percent for a REIT index and 6.2 percent for the S&P 500 Index. Five-year Treasury notes even did much better, posting a 5.1 percent annualized gain.

Another day, another hedge fund closure. This time it is RoundKeep Capital Advisors LLC, founded by former Citadel Investment executive Ervin Shindell. The event-driven fund, which counted on an active deal market, saw assets under management shrink from more than $1 billion in early 2011 to a recent $350 million.

Hedge fund giant Brevan Howard may be coming back to London. The firm, which moved to Geneva three years ago because of its low tax rates, is looking to return to its original home. It seems some traders miss the city's bustling nightlife.

Three hedge fund managers rank among Fortune magazine’s 40 Under 40. They are Greg Jensen, CEO of Bridgewater Associates; Chase Coleman, founder of Tiger Global; and Boaz Weinstein, founder, Saba Capital Management.

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