Louis Moore Bacon has liquidated a sizable portion of the debt investments at his $14 billion global macro firm, Moore Capital Management, following May losses caused primarily by his own trades, according to investors. The investors were not aware of the exact size of the firm’s now-liquidated debt holdings.
The flagship Moore Global Investments fund lost 9.24% in May, putting it down 6.36% for the year.
It is not the first time Moore has sold off some of its holdings following a large drawdown, said investors, but they said it was unusual that most of Moore’s May losses came from the debt portfolio run by Bacon. Investors added that Louis Bacon has typically been quick to cut losses, and they were surprised that it had taken so long for him to sell this time, noting that the large sale “puts pressure on everyone else with a debt portfolio.”
A spokesman for Moore declined to comment.
—Britt Erica Tunick