Hedge Fund Fir Tree Returns External Cash After Three Decades

New York-based hedge fund Fir Tree Partners — known for instigating activist campaigns against distressed companies — is returning outside capital to investors, according to a letter seen by Bloomberg News.

Fir Tree, founded in 1994 by Jeffrey Tannenbaum, plans to return around 95% of capital within its Credit Opportunity Fund by early March and the remaining funds after a final audit, according to a letter to investors. This excludes its PAMLI Global Credit Convexity business, which will be transferred over to another investment manager and will continue its activities.

A representative for Fir Tree declined to comment.

Its ...