Greylock Capital Associates has filed for bankruptcy proceedings in New York after years of negative returns triggered fund withdrawals.
According to a filing dated Jan 31 and signed by Chief Financial Officer, David Steltzer, assets under management at the hedge fund –which more than halved since 2017 to $450 million at the end of 2020– will drop to $100 million by the end of March after the firm recorded three years of losses.
Greylock, led by Chief Executive Officer Hans Humes, is known for taking bets on troubled sovereign debt, from Greece to Lebanon. The Chapter 11 proceedings will allow Greylock to terminate its lease in Madison Avenue, Manhattan, which costs about $100,000 per month.
The firm currently employs nine people and is in talks with its remaining major investors, confident that the business can “successfully reorganize and continue as a going concern” after the bankruptcy.