**Eisler Capital Faces Deepening Losses Amid Wind-Down Process**
Eisler Capital, a multistrategy hedge fund firm, has reported significant losses as it moves towards closure. In December, the firm experienced a 7.35% decline, bringing its total losses for 2025 to 14.3%, as detailed in an investor letter. The majority of these losses stemmed from pass-through expenses, which are costs directly charged to clients, including salaries and bonuses. The firm has officially begun winding down operations.
While many peers in the multistrategy hedge fund sector achieved double-digit gains last year, Eisler Capital was down just 1.7% through August before deciding to liquidate. The firm’s struggles highlight the challenges of managing and unwinding multistrategy hedge funds, which often incur high operational costs due to their complex structures and the need to retain talent, technology, and infrastructure, especially as their asset base diminishes.
Eisler Capital, founded by former Goldman Sachs partner Edward Eisler, announced its closure in September after facing declining assets, rising staff costs, and disappointing returns. In a letter dated December 16, the firm indicated that it anticipated fully unwinding its portfolio by December 31, with the final net asset value expected to be established on that date. The net asset value (NAV) is typically finalized within 15 business days following the end of the month, with redemption payments to be processed as soon as feasible.
To mitigate costs during the wind-down, Eisler Capital is actively reducing operating expenses by terminating contractual obligations related to staff, real estate, and infrastructure, while also negotiating discounts with third parties to alleviate employee-related costs.
As the firm navigates this challenging process, it remains focused on minimizing expenses, with total wind-down costs projected to be between 10% and 15% of the NAV as of September 30.
**FAQ**
*What led to the closure of Eisler Capital?*
Eisler Capital decided to close due to declining assets, increasing staff costs, and returns that did not meet expectations, ultimately resulting in significant financial losses.
