Hugh Hendry shuts Eclectica hedge fund, blames macro model

New York

HUGH Hendry said the macro hedge funds' model is broken because it isn't producing enough returns to cover costs and keep investors sweet.

The money manager is throwing in the towel on his investment firm after a 15-year run amid mounting losses. He and peers betting on economic trends have been running higher levels of risks to justify their existence and play catch-up with markets on a roll, he said.