Sandbar Asset Management, the investment firm founded by former Millennium Management trader Michael Cowley, has shut down its hedge fund after struggling to grow assets, according to a report by Bloomberg.

The report cites Sandbar CEO James Orme-Smith as confirming that the equity-focused fund failed to achieve critical mass after launching in 2018 and had $84m in assets – down from a peak of $150m – when the decision to close was taken.

Sandbar, which was once one among the fastest growing firms in London, will now focus on the $400m Lumyna-Sandbar Global Equity Market Neutral UCITS Fund, a fund that mimics the hedge funds' investment strategy but allows investors daily access to their capital.

According to data from eVestment, Sandbar is not the only equity-focused hedge fund firm to struggle to grow assets, with investors having almost $51bn in the eleven months to the end of November 2023.