Seminole Capital Management Returns Some Cash; Blames HFT

Count the $3 billion Seminole Capital Management as yet another hedge fund that is blaming the odd quantitatively driven market environment for its troubles. The fund’s solution is to return just over 10 percent of its assets to investors, saying their hedge fund value investing strategy needs to reduce assets under management to remain viable. The move comes as BlueCrest Capital Management and Tiger Veda Management recently returned assets to investors and closed their doors to outside investors.

Seminole returns just over 10 percent of assets to clients

“In short, the game has changed,” Seminole founders Michael Messner and Paul...