This decision follows a comprehensive evaluation of current regulatory, tax, and market dynamics, along with the fund's performance.

In an internal communication to investors, CEO Andrew Holland on behalf of the firm stated, “After careful evaluation of the current regulatory, tax, and market environment along with the performance of our strategies, we have made the decision to wind down Avendus Absolute Return Fund. We believe it is the most prudent step forward and in our investors’ best interests."

Additionally, it was confirmed that the Key Investment Team responsible for the fund would be transitioning out of the firm. The fund manager of this Long-Short vehicle is Nandik Malik.

Avendus has prioritised a smooth and efficient wind-down process to protect investors' interests. The firm plans to exit all investments under the scheme and maintain the liquidated corpus in cash or cash equivalents to avoid adverse market movements and ensure the preservation of capital.

Investors can expect redemption of their holdings on January 20, 2025. Avendus has committed to distributing 95% of the distributable proceeds by January 27, 2025, with the remaining balance disbursed by the end of February 2025, subject to any holdbacks for tax obligations and related costs. Notably, the firm has waived the fixed management fee for January 2025.

The fund sought capital appreciation and positive returns in an efficient, risk-adjusted manner through long and short positions in equities and indices.

The fund's decision marks a significant step, reflecting the challenging operating conditions faced by alternative investment funds in the current market environment.

While the decision underscores Avendus' commitment to safeguarding investor interests, it also highlights the broader challenges that hedge funds may face in navigating evolving regulatory landscapes and market volatilities.