A hedge-fund manager says an unusual culprit contributed to his firm’s demise: high-frequency traders.

Rinehart Capital Partners LLC, which had been backed by hedge-fund veteran Lee Ainslie and specialized in emerging-markets stock-picking, is closing, according to a letter viewed by The Wall Street Journal.

In the letter, Rinehart founder Andrew Cunagin aligned himself with those who have been critical of the rise of fast-moving traders.

“This is a circus market rigged by HFT and other algorithmic traders who prey on the rational behavior of warm-blooded investors,” Mr. Cunagin wrote, referring to the high-speed traders who have attracted wide attention this year for the alleged advantages they hold over more traditional investors.

Mr. Cunagin, 43, said in an interview from Cape Town, South Africa, where he was scouting potential future investments, that there was “clear evidence of penetration” by high-frequency traders in the stock markets of South Korea and Mexico, among other areas.

“You can see the evidence of dark pool trading…you’ll see half the day’s trading volume occur in the last seconds of trading,” he said. “There’s just evidence that this is not a level playing field.”

Rinehart, based in Nashville, Tenn., had less than $100 million under management this summer. It joins other stock-picking hedge funds that have thrown in the towel in recent months, such as Emrys Partners LP, managed by financial-crisis star Steve Eisman, and an effort from private-equity giant KKR KKR +0.09% KKR & Co. L.P. 

Many hedge-fund managers, particularly those that bet on global economic trends, have criticized stock prices they believe to be out of whack and a lack of trading volatility, which they say doesn’t suit their style. Stock prices have risen for five consecutive years, helped by low interest rates and central-bank stimulus programs.

Continue reading the rest of the story at WSJ.com

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LONDON—For private-equity giant KKR +0.30% & Co., a debut investment in Africa smells of sweetheart roses. {And for others seeking investment capital for Africa-based opportunities, BrokerDealer.com provides a global resources of brokers, dealers and private investors seeking new deal opportunities}

KKR is investing about $200 million in Ethiopian flower company Afriflora; above, an Afriflora worker. Afriflora

Afriflora is an Ethiopian company that grows about 730 million of the flowers a year for export to Europe, making it a significant player in the east African country’s blossoming cut flower export industry. KKR is investing about $200 million from its $6.2 billion European fund to buy a stake in the company, according to a person familiar with the transaction.

The deal opens a new chapter for KKR, the New York-based firm best-known for its hostile $25 billion leveraged takeover of RJR Nabisco RAI +1.47% in 1988, the subject of the book “Barbarians at the Gate.”It also comes as private-equity firms, seeking opportunities outside the crowded markets of North America and Europe, show tentative interest in Africa. KKR rival, Washington-based Carlyle Group CG -0.34% LP, raised a $698 million African fund earlier this year and has invested in a food distributor and a logistics company, for instance.

Private-equity investment in sub-Saharan Africa increased 43% to $1.6 billion in 2013 from the previous year, according to the Emerging Markets Private Equity Association. Investors are attracted by fast economic growth in some countries on the continent. The Ethiopian economy grew by an average 10.6% a year between 2004 and 2012, according to the World Bank.

“We see Africa as a long-term attractive investment destination,” said Kayode Akinola, head of KKR’s African operations. “The potential is astounding. But the work to get there is going to be considerable.”

For the full story from the Wall Street Journal, click here

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