Eisler Lost 14.3% Last Year as Hedge Fund Firm Closed Down
(Bloomberg) — Losses at Eisler Capital deepened last month, according to an investor letter from the now-shuttered multi-strategy hedge fund firm.
The letter, seen by Bloomberg News, showed the money manager reported a 7.35% decline in December, taking the 2025 decline to 14.3%. Almost all of the losses were due directly to transit spending, said people with knowledge of the matter, who asked not to be named discussing private information. The fund is now officially closed.
Toll fees are costs that some hedge funds charge directly to clients, such as salary and bonus expenses.
Peers in the multi-strategy hedge fund industry largely posted double-digit gains last year, Bloomberg News reported. The Eisler fund was down just 1.7% through August last year, before the liquidation decision.
Eisler’s losses show that multi-strategy hedge funds are costly not only to build and operate but also to dissolve; Rising expenses associated with talent, technology and operational layers are exacerbated by a shrinking asset base. These funds still need to pay investors who make money; However, Eisler tried to cut the bonus payments to those who wanted to leave immediately after the decision to close the shutters.
The company, founded by Edward Eisler, announced in September that it would close after struggling with declining assets, rising personnel costs and returns that did not keep up with expectations. In another letter dated Dec. 16, the hedge fund said the portfolio was expected to be fully unwound by Dec. 31, with the final net asset value expected to be determined that day.
It was stated that NAV is generally finalized on or before the 15th business day following the end of the month and the first payment of refund/withdrawal proceeds will be made as soon as possible.
Eisler said they are trying to minimize costs and total closing costs are expected to be in the range of 10% to 15% of NAD as of Sept. 30.
“Alongside the process of selling the Master Fund portfolio, the firm is moving quickly to cut operating expenses by exiting contractual commitments such as staff, real estate and infrastructure and negotiating discounts where possible,” he said. “This includes agreements with third parties to offset employee-related costs.”
A representative for Eisler Capital declined to comment.
Eisler, a former partner at Goldman Sachs Group Inc., started his business as a macro trading firm in 2015, but later sought to expand his hedge fund into a suite of strategies starting in 2021.
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