Myriad Asset Management has closed down a Japan-focused hedge fund less than a year after opening it, after changing its view on the government's ability to end deflation through stimulus, said a person with knowledge of the matter.
Myriad started the Japan Reflation Fund in March 2015 to tap opportunities arising from the nation's efforts to spur growth. The Hong Kong-based firm liquidated the pool, which managed $420 million at its peak, around the end of last year and returned the capital to investors, said the person, who asked not to be identified as the information is private.
Global investors such as BlackRock Inc. have ended bullish calls on Japan as Prime Minister Shinzo Abe's growth measures faltered, economic indicators deteriorated, stimulus from the Bank of Japan backfired and the yen's surge pressured exporters. The Topix index is down almost 16 percent this year through May 4, the fourth-worst performing primary stock gauge tracked by Bloomberg globally in local currency terms. Foreign investors were net sellers of Japanese equities for the first 13 weeks of 2016.