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Former Millennium portfolio manager secures $3 billion in capital from Izzy Englander’s firm, takes up to 30 investment staff and prepares to launch largest new hedge fund in more than a year We are promoting.
Diego Megia, who worked at Citadel before spending five years at Millennium, has invested between $4 billion and $5 billion to launch Taura Capital, two people familiar with the fundraising efforts said. The goal is to raise funds for the family. The macro hedge fund is expected to begin trading in the first half of this year, people familiar with the matter said.
Other big launches are planned for later this year, including former Millennium co-chief investment officer Bobby Jain’s new fund, Jain Global, which is expected to open at $4 billion in July. , Taura’s size will still be larger than any hedge fund founded last year.
Freestone Grove Partners, a multistrategy hedge fund led by a former Citadel portfolio manager, was launched last week with $3.5 billion, according to people familiar with the matter.
Millennium’s investment and the fact that Taura aims to launch with up to $5 billion in capital was previously reported by industry intelligence service Wiz Intelligence.
Hedge fund launches are declining as the war for talent drives portfolio managers to join large, established funds, while institutional investors are becoming more selective, with established managers of large funds with proven track records. The allocation is reserved.
Millennium and other large hedge funds are known for helping talented portfolio managers launch their own funds, usually with preferential investment terms. Millennium declined to comment.
But it’s unusual for a portfolio manager to bring along a large team of investment professionals, as Megia does. Taura Capital will launch with about 60 people, including 26 to 30 investment staff and 30 support staff, according to people familiar with the matter. Taura Capital declined to comment.
After a decade of low volatility in the government bond market, rising central bank interest rates and rising inflation have made macro trading potentially very profitable for hedge funds. Macro hedge funds such as Brevan Howard, Lokos Capital and Caxton posted huge gains in 2022, but last year’s performance was even weaker.
The launch comes amid a difficult financing environment for hedge funds, as many talented portfolio managers choose to join large multi-manager hedge funds such as Millennium, Citadel, Point72 and Baryasny. It was held in
These funds are very popular among institutional investors looking for stable returns that can continue even when stock markets decline.
Intense competition for talent among managers has resulted in huge fees and discouraged portfolio managers from starting their own hedge funds.
The largest funds launched in 2023 include London-based equity hedge fund Ilex Capital Partners and New York-based hedge fund SurgoCap, each with capital of 2.1 billion. It was founded with $1.8 billion and $1.8 billion.
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