London-based Eisler Capital, the multistrategy hedge fund firm, has reported a significant deepening of its losses as it formally concludes its operations. The firm, which announced its closure in September, faced mounting costs that severely impacted its final performance figures.
Mounting Losses in the Final Months
According to an investor letter reviewed by Bloomberg News, Eisler Capital's fund experienced a sharp 7.35% decline in December 2025. This drop extended the total loss for the year to a substantial 14.3%. Sources familiar with the matter indicated that nearly all these losses stemmed from pass-through expenses. These are costs, such as salaries and bonuses, that some hedge funds charge directly to their clients.
This performance stands in stark contrast to the broader industry. Reports indicate that peers in the multistrategy hedge fund sector largely achieved double-digit gains throughout last year. Interestingly, Eisler's fund was down a relatively modest 1.7% through August 2025, just before the decision to liquidate was made.
The High Cost of Unwinding a Hedge Fund
The situation at Eisler Capital underscores a critical, yet often overlooked, aspect of the hedge fund business: the immense cost of shutting down. The case reveals that multistrategy funds are not only expensive to build and operate but also to unwind. Spiraling expenses linked to layers of talent, technology, and operations are exacerbated by a shrinking asset base.
Even during a wind-down, funds are obligated to pay traders who generated profits. Eisler attempted to mitigate some costs by imposing cuts to bonus payouts for employees who chose to leave immediately after the closure announcement. In a letter dated December 16, the firm stated it expected the portfolio to be fully unwound by December 31, with a final net-asset value (NAV) set on that day.
Efforts to Minimize Closure Expenses
Eisler Capital has been actively trying to reduce the financial burden of its closure. The firm stated that total wind-down expenses are anticipated to be in the range of 10% to 15% of the NAV as of September 30.
"Alongside the process of selling the Master Fund’s portfolio, the firm is moving quickly to cut operating expenses by exiting contractual commitments such as staff, real estate and infrastructure, and by negotiating discounts where possible," the hedge fund explained. "This includes agreements with third parties to offset employee-related costs."
The firm clarified that the NAV would be finalized on or before the 15th business day following month-end, with the first redemption payments made as soon as possible. A representative for Eisler Capital declined to provide further comment on the matter.
Founded in 2015 by Edward Eisler, a former Goldman Sachs Group Inc. partner, the firm began as a macro trading operation. It later sought to transform into a multistrategy hedge fund starting in 2021. The closure was prompted by challenges including dwindling assets, soaring staff costs, and returns that failed to meet expectations.
