Eisler Capital to Shut Down as Losses, Talent Challenges, and Rising Costs Mount
Eisler Capital, the London-based hedge fund founded by former Goldman Sachs partner Edward K. Eisler, is preparing to close its flagship fund and return capital to investors. The decision marks the end of a decade-long effort to build a leading multi-strategy platform, undone by weak performance, shrinking assets, and the increasingly fierce competition for top talent in the hedge fund industry.
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From Global Macro to Multi-Strategy Ambitions
Edward Eisler launched the firm in 2015 after a 20-year career at Goldman Sachs, where he co-headed the global securities business. Initially created as a global macro fund, Eisler Capital made its name trading macroeconomic themes across currencies, interest rates, and commodities.
By 2021, amid shifting investor preferences, the firm transitioned into a multi-strategy model, raising $1 billion for its new Multi Strategy Fund. The pivot initially paid off: the fund gained 15.1% in 2022 and 9.8% in 2023, positioning Eisler as a credible competitor to larger platforms like Millennium and Citadel. Assets under management climbed, and the multi-strategy fund became the firm’s flagship.
But by late 2024, momentum faltered. Performance slipped, investors grew restless, and Eisler introduced withdrawal limits to slow outflows — halving redemption allowances from 25% to 12.5% per quarter. While common among multi-strategy peers, the move underscored how difficult it was becoming to balance liquidity, high staffing costs, and investment in technology.
Performance Woes and Asset Declines
The downturn accelerated in 2025. Eisler Capital posted a -2.5% return between January and July, underperforming rivals that continued to deliver double-digit gains. Assets under management, which stood at about $4 billion earlier in the year, are now expected to fall to $3 billion or less by year-end.
To cut costs, the firm reduced headcount by 15% in May, bringing staff down to roughly 250 employees. Despite the cuts, insiders pointed to rising overheads — including lavish new offices in London’s Piccadilly and New York’s Hudson Yards, where the firm had recently opened a high-profile trading floor.
Legal Battles and Talent Turnover
The firm has also been embroiled in a legal dispute with former portfolio manager Bharat Garg, who joined from Morgan Stanley in 2024 with a lucrative $3.5 million compensation package. Dismissed later that year, Garg is contesting the clawback of his sign-on bonus, arguing wrongful termination. The case has shed light on Eisler’s aggressive pay practices and strict contractual terms, including clawbacks for departing managers. See: Hedge fund Eisler Capital’s hiring approach revealed in court case
Meanwhile, a series of senior departures — including high-profile figures in both London and New York — left the firm struggling to retain talent. By 2023, reports surfaced of at least a dozen senior executives leaving within months of joining, highlighting the challenges of building a sustainable culture under intense industry pressure.
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Corporate Decisions and Market Pressures
Eisler’s cautious risk appetite also shaped its trajectory. The firm abandoned a planned acquisition of Glen Point Capital in 2022 after clashing over risk tolerance. That same year, it redeemed investments linked to Russian backers following the invasion of Ukraine, distancing itself from sanctioned oligarchs.
While lauded for integrity and discipline, these moves limited growth compared to rivals. In 2022, the firm’s average UK employee reportedly earned $1.2 million, a sign of its willingness to pay top dollar for talent. Yet the model proved hard to sustain as performance lagged.
The End of an Ambitious Experiment
For Edward Eisler, who once oversaw Goldman’s global securities division, the firm’s closure underscores the unforgiving dynamics of modern hedge fund competition. Even with strong early years and deep pockets, maintaining an independent multi-strategy platform has become increasingly difficult in a market dominated by giants.
Eisler Capital will now join the list of hedge funds that rose quickly on investor enthusiasm but fell victim to weak returns, high costs, and relentless competition.
