Highfields Capital Management LP, the $13 billion money-management firm run by Jonathon S. Jacobson, is planning to return some money to clients at the end of the year, according to a person briefed on the plan.
The Boston-based firm may return between 5% and 15% of its assets, said the person, who asked not to be identified because the information is private. Highfields posted a gain 18 percent this year through September, according to the person.
Fund managers sometimes give back client money to limit the amount of assets they have to invest, a move that makes it easier to find profitable opportunities. Billionaire Louis Moore Bacon, founder of hedge-fund firm Moore Capital Management LLC, last year told clients that he planned to return $2 billion, or 25 percent of his main hedge fund, because assets were too big for him to achieve past investment returns.
Highfields, which sent a letter to clients notifying them about the plan, will make a final decision at the end of the year about how much it will hand back to clients, the person said. Mr. Jacobson wasn't available to comment on the plan when contacted by Bloomberg News.(Bloomberg News)