--- title: Why a Hedge Fund Is Giving $400 Million Back to Its Investors description: Seminole Management Co. returned $400 of its investors' money after a 7% loss. authors: - name: Martha C. White role: Writer url: https://money.com/author/martha-c-white/ education: BA, English, Princeton University at_money_since: 2015 articles: 350 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology published: '2015-12-02T21:28:10.000Z' modified: '2024-04-16T09:14:22.000Z' section: Investing tags: - bad investments - best investment strategy - hedge funds - Investing - investment strategies - pubdesk word_count: 187 canonical: https://money.com/hedge-fund-gives-back-400-million-to-investors/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![suitcase of money](https://img.money.com/2015/12/151202_inv_hedgefundreturnsmoney.jpg) Hedge fund company Seminole Management will return $400 million of investors' money, saying it couldn't "maintain historical-like returns" in today's market, according to the *[Wall Street Journal](http://www.wsj.com/articles/hedge-fund-seminole-management-to-return-400-million-to-investors-1449084075)*, which noted that the fund has lost more than 7% in its primary fund since the beginning of the year. The *Journal* cited a letter sent to investors and a representative of the company as saying,“the game has changed” with regard to the trading strategy the 20-year-old fund uses on the more than $3 billion it managed as of the beginning of the year. Three years ago, a [*Forbes* article](http://www.forbes.com/sites/johntamny/2012/07/15/can-master-investor-michael-messner-fix-the-gruesome-real-estate-problem/) touted Seminole co-founder Michael Messner as a "master investor." According to the *Journal*, the firm's letter to investors blamed factors including electronic trading and central bank activity. ##### [![Best college education image](https://content.money.com/wp-content/themes/money2018/img/college-site-banner-02.png)](https://best-colleges.time.com/money/search-colleges/?xid=cm-mcpFindTheCollegeWidget) It's a tough week for hedge fund investments: The news comes just a day after [Bloomberg reported](http://www.bloomberg.com/news/articles/2015-12-01/michael-platt-s-bluecrest-to-return-all-outside-investor-money) that $8 billion hedge fund company BlueCrest Capital Management would shut down after a 15-year run, returning all investor funds and instead just managing the assets of firm head Michael Platt and his partners. **Read Next: [How Mark Zuckerberg and Priscilla Chan’s Donation Could Save Retirement](https://money.com/chan-zuckerberg-initiative-facebook-roth-ira-retirement/)** ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/hedge-fund-gives-back-400-million-to-investors/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Alternative Investments", "item": "https://money.com/alternative-investments/" }, { "@type": "ListItem", "position": 4, "name": "Why a Hedge Fund Is Giving $400 Million Back to Its Investors" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/hedge-fund-gives-back-400-million-to-investors/#webpage", "url": "https://money.com/hedge-fund-gives-back-400-million-to-investors/", "name": "Why a Hedge Fund Is Giving $400 Million Back to Its Investors", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2015-12-02T21:28:10.000Z", "mainEntity": { "@id": "https://money.com/hedge-fund-gives-back-400-million-to-investors/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/hedge-fund-gives-back-400-million-to-investors/#breadcrumb" }, "dateModified": "2024-04-16T09:14:22.000Z" }, { "@type": "Article", "headline": "Why a Hedge Fund Is Giving $400 Million Back to Its Investors", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2015/12/151202_inv_hedgefundreturnsmoney.jpg", "width": 2100, "height": 1429, "caption": "151202_INV_HedgeFundReturnsMoney" } ], "author": [ { "@type": "Person", "name": "Martha C. 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