NEW YORK/LONDON, March 18 (Reuters) – A bumper crop of 40 high-profile hedge fund launches by former portfolio managers of multi-billion dollar firms is expected this year, said research firm PivotalPath and other prime broker and industry sources.
Traders from Citadel, Lone Pine Capital, Oaktree Capital Management and Paloma Partners are among those fundraising for their own ventures, people familiar with the matter said. Launches by executives who have recently exited major firms usually attract a lot of interest from investors who expect they will be able to replicate their old shops’ performance.
“Many of these people have done extremely well and may be looking for something more independent,” said Jon Caplis, chief executive of hedge fund research firm PivotalPath which tracks launches through prime brokers and investor sources.
PivotalPath is tracking 40 planned high-profile launches this year, compared to 26 expected this time last year. Prime brokers and investors told Reuters they were also expecting a lot of debuts by managers who have left big firms.
Tommaso Trento, former portfolio manager at global hedge fund giant Citadel, plans to launch Benchstone Capital Management, focusing on consumer and technology, media and telecom (TMT) stocks, said a person familiar with the matter. Trento plans to raise $750 million, the source said.
Arthur Wit, a former Lone Pine Capital partner, is fundraising for his Perryridge Capital, a long/short equities hedge fund focused on healthcare and industrials globally, a person familiar with the matter said. The launch is expected in the second half of the year.
In a rare woman-led debut, Chiki Gupta Brahm, another former Citadel portfolio manager, is expected to launch Tessellis Capital Management at the end of the year, trading industrials, consumer and TMT stocks, one source said.
The sources declined to be identified because the fundraising discussions are private.
The most high-profile launches of multi-billion dollar hedge funds this year will come from former Millennium Management co-Chief Investment Officer Bobby Jain, opens new tab, and a spinoff of Capula Investment Management by its partner Nat Dean, one source said.
Source: Reuter
