BlueMountain Continues To Struggle In Market Turmoil

Soon after the $19 billion hedge fund, BlueMountain Capital Management was sold to Assured Guaranty for $160 million in the second half of 2019, the firm announced the closure of its $2.5 billion flagship BlueMountain Credit Alternatives Master Fund. The decision to close the fund came after years of underperformance. It failed to meet its annual return target of 8% to 10% every year from 2012 onwards. Since its inception, the fund only earned 6.7% annualized for its investors. However, despite this lackluster performance, BlueMountain continued to charge performance fees as much as 30%. As returns declined and expenses mounted,…