FNMA Fannie Mae (QB)

Richard Perry will shutter his hedge-fund firm after billions of dollars in investment losses and client defections.

The longtime hedge-fund manager told clients in a letter Monday "the industry and market headwinds against us have been strong, and the timing for success in our positions too unpredictable."

Mr. Perry's eponymous firm has lost more than 60% of its assets under management since November 2014, when it managed $10.4 billion. Its main fund lost more than 12% last year, much of it from a bad bet on Fannie Mae and Freddie Mac, and was down 1.3% this year through August, said a person familiar with the matter.

Mr. Perry won't give back all of the remaining money immediately. He committed in the letter only to returning "a substantial amount of the fund's capital" starting next month. Some of the remainder won't be cashed out for more than a year, the letter said.

Bloomberg News earlier reported Perry's shutdown plans.

Write to Rob Copeland at rob.copeland@wsj.com and Juliet Chung at juliet.chung@wsj.com

(END) Dow Jones Newswires

September 26, 2016 18:55 ET (22:55 GMT)

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