Star Trader Departs Moore Capital, and Hedge Funds Altogether

At the age of 41, having made a fortune as a trader at some of the biggest hedge funds in the world, Greg Coffey announced in a letter to investors that he was leaving Moore Capital - and the industry - to spend more time with his family.

The move was not unexpected, though it did highlight the unattractive nature of markets these days to those who can afford to walk away. Mr. Coffey, who owns a hunting estate in Scotland and lavish homes in London and his native Australia, is said to be worth about $700 million. He also joins a long line of investors who have given up managing hedge funds in the last few years, including George Soros, Carl Icahn, Stanley Druckenmiller, John Arnold of Centaurus and Mark Rokos of Brevan Howard.

“After nearly 20 years in the financial markets, I've decided to leave the industry,” he wrote to investors. “The demands of my growing family mean that I am unable to commit to the market with the same intensity going forward. I p lan on seeing much more of my wife and children and spending time in my home country, Australia.” Bloomberg News had earlier reported that Mr. Coffey was planning to leave the fund.

Mr. Coffey joined Moore Capital, run by the billionaire Louis Bacon, in 2008. Having earned his reputation at GLG Partners, where he ran a highly successful trading book, his stock was high and his departure in some ways represented just how much hedge funds were willing to splurge for talent. To keep him, GLG reportedly offered him roughly $250 million. Mr. Bacon offered Mr. Coffey the title co-chief investment officer of European investing.

When he joined Moore, Mr. Coffey took the helm of two emerging market funds. At the time, whispers circulated through the industry that Mr. Coffey, whom Mr. Bacon had described as “one of the most impressive traders in the world,” was the heir apparent to take over Moore Capital. Last year, he raised more than a billion dollars for a new fu nd, called GC Moore, branded especially for him.

Those lofty ambitions were quickly brought down to earth, as Mr. Coffey struggled to make the sort of eye-popping gains that earned him his reputation as the “Wizard of Oz,” a nod to his home country. This year, his GC Moore fund is down 2 percent after a big rally in September. The two emerging markets funds, however, are down 16 percent and 2 percent.

Over all, his track record at Moore averaged annual returns of 4.7 percent. The $1.6 billion the GC fund once had has now dwindled to around $100 million, and the remaining cash will be returned to investors.

The news comes amid a general downsizing at Moore Capital. As DealBook reported in August, Mr. Bacon returned $2 billion to his investors after conceding he was confounded by the markets.

On his former protege's departure, Mr. Bacon said in a statement: “Greg Coffey has been a significant contributor to Moore's European business, and we are di sappointed that he is choosing to retire from the industry. We wish him well in all his future endeavors.”