EFTA00316696.pdf

Hedge FundALERT JANUARY 22, 2014 Dubin Taps Deputy to Run New Family Office Glenn Dubin, the legendary co-founder of Highbridge Capital, is establishing a 4 HEDGE FUND PERFORMANCE family office to manage his personal fortune. The startup, Dubin & Co., last year took office space at the GM Building, occupy- 3 Cyrus Closes Subscription Window ing more than a quarter of a floor in Manhattan's most desirable skyscraper. Word is that a Highbridge deputy, Greg Elsner, is leading the effort as head of strategy. 3 Munis On the Menu for Startup Eisner joined Highbridge in 2005 and most recently held the title of managing 3 CDO Specialist Launches 4th Vehicle director and chief operating officer for hedge fund products. He joined Dubin & Co. early last year. It's unclear when the new firm is expected to be fully operational. 4 Jeffedes Forms Trading Partnership Dubin is best known for establishing Highbridge, a multi-strategy hedge fund 5 DIscount Offered, With a Catch operation, in 1992 with childhood friend Henry Swieca. In 2004, they sold a control- ling stake to J.P. Morgan, and in 2009 the bank bought their remaining interests in 5 Mum Fund Opens to Wider Audience the firm. J.P. Morgan reportedly paid $1.3 billion for its initial stake in the business. Highbridge manages $27.5 billion of regulatory assets, including leverage. Swieca 6 Somerset Adds Frontier Fund to Menu See DUBIN on Page 6 6 Boston Co. Hires Emerging-Market Pro 7 LATEST LAUNCHES Separate-Account Effort Powers Lighthouse Lighthouse Partners' funds of funds generated double-digit returns last year, but its "funds of managed accounts" performed even better. The firm's traditional funds of hedge funds, whose underlying investments are in commingled vehicles, posted 2013 returns ranging from 10.5% for Lighthouse 5 Fund to 14.2% for Lighthouse Credit Opportunities Fund. The flagship Lighthouse Diversified Fund returned 12%. By comparison, the HFRI Fund of Funds Compos- ite Index rose 8.8%. For nearly a decade, the Palm Beach Gardens, Fla., firm also has offered multi- manager products whose underlying stakes are separate accounts, rather than shares in commingled funds — a strategy that clearly bore fruit last year. Four of its seven funds of managed accounts gained 20% or more, led by the Lighthouse Asian Compass Series (up 25.7%) and Lighthouse Healthcare Series (up 25.3%). Lighthouse Global Long/Short Fund returned 20.1%. The only loser in the bunch THE GRAPEVINE See LIGHTHOUSE on Page Senior analyst Satish Athavale left KSA Capital this month to become a portfolio Leucadia Launches Global-Macro Operation manager on Vislum Asset Management's Leucadia National's asset-management business, formed last year via the pur- Visium Global Master Fund. At KSA, chase of Topwater Capital, is starting a global-macro division. Athavale worked on an equity fund Leucadia, whose other holdings include Jefferles, has tapped an executive at the called KSA MidOcean. He had been on investment bank, David Zervos, to lead the effort. Zervos is chief investment officer board at the Morristown, N.J., operation of the new Leucadia division, even as he continues to serve as chief market strate- since 2004. Visium, a multi-strategy shop gist and global head of fixed-income strategies at Jefferies. led by founder Jacob Gottlieb, runs $5.5 The global-macro operation is still taking shape, but it appears Zervos team billion through about a half-dozen hedge initially will manage institutional assets in separate accounts, then launch com- fund products. mingled funds at some point in the future. What's clear is that the investment strat- egy will be driven by Zervos' views of the global economy — suggesting more of a Managing director Matt Marady will discretionary style than a systematic approach. leave his post as Silver Creek Capital's Investors who want in will have to clear a high minimum-investment threshold See GRAPEVINE on Back Page See LEMMA on Page 5 EFTA00316696  through complexity Take the journey... Gain the insights of over 200 hedge fund managers representing approximately USD 912 billion of assets under management (AUM). Learn about innovative and practical solutions being undertaken in our global hedge fund survey. The cost of . , compliance I ' ii 140 •, 2013 KPMG AYAIAMFA "I , _ / Global Hedge Fund ,7 - --• ' • • It, z• • aime.0.9 2 ". r°, ma....xsdtundsArg r• w owre 4a -08 EGto 8 gt,t E cg u •A C :L O 2 mn For full access to this information, q 4N please visit at H:2 RLtl.2 O § 4 pe 9 V I Z; E 9I 2 1 G ic3 2: 1 dr: g r M?! i • '43 • kit e• SZ12 c;i1-1 EFTA00316697 January 22, 2014 3 Hedge Fund was a portfolio manager on a multi-billion-dollar book of muni Cyrus Closes Subscription Window holdings owned by the bank. Also on board is chief financial Distressed-debt manager Cyrus Capital has "hard closed" officer Vincent Marchisella, who most recently held the same its two main hedge funds after investment gains doubled the title at Wesley Capital. vehicles assets to $3.3 billion in the past four years. Whitehaven employs a relative-value strategy to bid for new On Jan. 17, Cyrus' board, led by founder Stephen Freldhelm, and secondary offerings of high-grade municipal debt. The voted to cut off subscriptions to Cyrus Opportunities Fund 2 huge market is populated more by retail investors and mutual and Cyrus Select Opportunities Fund, which account for the funds seeking tax-free income, rather than alpha-driven hedge lion's share of the firm's assets. Since 2010, performance alone fund managers. But the firm believes it can stand out by iden- has added $1.7 billion to the combined assets of the two funds, tifying pricing inefficiencies that have developed in the wake of Freidheim noted in a letter to investors last week. During the the credit crisis. same period, employees increased their stakes in the vehicles Whitehaven's formula is based on the idea that munici- by a total of $150 million, and the firm returned $230 million pal securities now trade more like corporate credit products. of capital to investors "with their approval; Along with traditional munis, the firm is eyeing Build Amer- "We are at an asset size that we believe is within the sweet ica Bonds — a type of taxable debt sold in 2009-2010 under spot for the current environment, given our strategy; Fre- the American Reinvestment and Recovery Act. Those instru- idheim wrote. "We have found excellent alpha opportunities, ments are priced at a spread over U.S. Treasurys, as opposed yet they have been more limited in size and availability, more to a specific yield. specialized in nature, and required rigorous searches and deep, In addition to municipal debt, Whitehaven uses other prod- detailed analysis — all of which benefits managers that are ucts to hedge against changes in interest rates and to offset nimble, focused and right-sized" macroeconomic risk. The offshore version of Cyrus Opportunities Fund 2 gained Richman worked at Gracie from 2008 to 2012. Along with 25.6% in 2013, while a U.S.-domiciled version was up 27.1% investing in munis at the credit-product shop, he had a hand — just shy of the 32% increase for the S&P 500 Index, but with in trading sovereign debt. Previously, he worked at Lehman only 28% net long exposure. Brothers. + In 2010, Cyrus "soft closed" its flagship vehicles, and since then has been very selective in accepting capital. The hard close takes effect at the end of the first quarter. It doesn't affect Cyrus CDO Specialist Launches 4th Vehicle Special Strategies Fund, a $325 million long/short and tail-risk A fund operator that specializes in buying collateralized vehicle that has capacity for another $150 million. debt obligations has raised $45 million via its latest offering. Cyrus, originally known as Och-Ziff Freidheim, was founded The Dublin manager, Crystal Funds, held a final close this in 1999 by Freidheim, Daniel Och and members of the Ziff fam- month for BK Opportunities Fund, a closed-end vehicle that ily. In 2005, Freidheim bought out his partners interests and will buy CDOs from banks and other financial institutions renamed the firm. looking to shed legacy assets. The firm, which began marketing In advising investors of the board's decision, Freidheim also the fund in late 2012, typically targets the subordinate trenches announced the hiring of three executives: chief financial officer and equity pieces of CDOs. and co-chief operating officer Tom Stamatelos, who previously The Cayman Islands-domiciled vehicle has a one-year was a founding partner at Woodbine Capital; London-based investment period. After that, the manager could reinvest portfolio analyst Peter Scott, who joined from the London office the capital for perhaps three years before winding down the of Sankaty Advisors; and senior compliance officer Denman vehicle. Tavakolian, who most recently worked at Lone Pine Capital. The BK Opportunities is the fourth closed-end fund the firm additions lift the firm's headcount to 36. 4,* has launched in the past 10 years. For its previous offering, Crystal Opportunities Fund, the manager teamed up with Tolls Advisors of New York. That offering, which dosed with $120 Munis On the Menu for Startup million of equity capital in early 2008, produced an annual A municipal-debt specialist has set up a vehicle focused on return of about 10% before winding down in 2012. An earlier that sector — a strategy rarely employed by hedge funds. vehicle, Crystal Fund 2, launched in 2006 and has generated Working through his Whitehaven Asset Management in New an annual return of about 8.5%. Investors in Crystal Fund 2 York, Scott Richman started trading the Whitehaven Credit have recouped their initial investments, but the vehicle is still Opportunities Fund on Jan. 2 with a little more than $30 mil- managing assets. lion. Since 2004, Crystal Funds has raised a total of about $500 Richman, who formerly headed municipal-bond invest- million for CDO investments. The firm currently manages ments at Grade Asset Management, is serving as chief invest- about $150 million, including separate accounts. Leading the ment officer. Ile is aided in the investment-selection process by operation are Olivier Goilan in Dublin and Ran Fridrich and partner Alexander Chilton, previously a Citigroup director who Neml Raphael in Tel Aviv. 4, EFTA00316698 January 22, 2014 4 Hedge Fund In Lighthouse's case, its managed-account vehicles have Jefferies Forms Trading Partnership different mandates than its traditional funds of funds — mak- A new alliance is enabling Jefferies to offer trading ser- ing performance comparisons difficult. At the very least, last vices to its prime-brokerage clients. year's results appear to validate the firm's emphasis on invest- The arrangement entails a partnership under which Jeffer- ing via separate accounts. Today, about 85% of Lighthouse's ies is directing hedge fund managers to Tourmaline Partners, $7.6 billion of assets are in funds of managed accounts. a Stamford, Conn., firm that identifies buyers or sellers of Overall, Lighthouse's assets under management have stocks and options on behalf of its customers and then exe- jumped by about $1 billion in the past 12 months. The gains cutes orders by routing them through the appropriate broker- apparently haven't been enough to satisfy Apollo Global, ages. which owns a stake in parent company HFA Holdings of Syd- Jefferies and Tourmaline aren't sharing revenues, but are ney. Apollo now wants to exit the position, Reuters reported promising to refer clients to each other — a key motivation on Jan. 8. for the initiative. Lighthouse, founded in 1999, is led by president and chief A small group of Jefferies' clients began trading through investment officer Sean McGould. Tourmaline this month, three months after the two firms began integrating their computer systems to support the effort. While hedge fund managers working with Jefferies are free to farm out trading to firms other than Tourmaline, the bank is emphasizing the idea that it now can offer them a more seamless experience as they move through the process Hedge Fund Performance of executing, clearing and reporting positions. Another part of the pitch: By engaging an outside firm Dec. 2013 Return Return to either work alongside their in-house traders or replace elS) ('4 those desks entirely, hedge fund managers can save on staff- BENCHMARK INDICES ing and operational costs while freeing up their investment S&P 500 2.53 32.39 professionals to focus on research. Such services also can be Russell 2000 1.82 37.00 valuable to larger managers that want to remain anonymous MSCI EAFE (Europe, Australia, Far East net) 1.50 22.78 when moving big blocks of securities. Barclays Aggregate Bond -0.57 -2.02 For Jefferies, the trading arrangement complements the Barclay/Global liedgeSource 1.18 11.16 securities-lending, clearing and capital-introduction services 1,900+ funds (unweighted) its New York prime-brokerage team already offers to clients. CogentHedge 0.92 6.87 It also relieves the bank of possible conflicts of interests that 3,100+ funds (unweighted) can arise for prime brokers whose affiliated trading desks pre- Credit Suisse Hedge Fund Index 1.19 9.73 fer not to deal with certain rivals, thanks to relationships that 5,000+ funds (weighted) Tourmaline maintains with 200 brokerage firms and 40 dark- pool operators. Eurekahedge Hedge Fund Index 0.91 7.98 2,500+ funds (unweighted) What's more, the partnership helps ensure that Jefferies' prime-brokerage operations remain fully segregated from Greenwich Global Hedge Fund Index 0.94 8.99 any trading functions. 2,000+ funds (unweighted) Tourmaline is active in the U.S., Europe and Asia. The firm HedgeFund Intelligence 1.19 8.60 was founded in 2011 by a group of former Greenwich Prime 7,000+ funds (unweighted) Wading Group staffers: chief operating officer Daniel Di spigna; Hennessee Hedge Fund Advisory 1.52 12.86 chief financial officer Jonathan Goldstein; compliance head 1,000+ funds (unweighted) and senior equity trader Ike Grotf; derivatives-trading chief HMI Hedge Fund Aggregate Average 1.18 9.64 Aaron Hallman; and Henry Higdon 3d., who heads a London 4,900+ funds (unweighted) office. Some of the founders also have worked at Williams Trading, which offers trading services to hedge funds. ❖ HFRI Fund Weighted Composite 1.09 9.24 2,000+ funds (weighted) Equity 1.49 14.44 Lighthouse From Page 1 Event-driven 1.16 12.48 Macro 0.60 -0.22 was Lighthouse Managed Futures Fund, which fell 5.7%. Relative value 0.70 6.98 So-called managed-account programs gained currency in Fund of funds 1.19 8.79 the wake of the financial crisis because they typically offer Emerging markets 0.47 5.60 more transparency and better liquidity terms than similar vehicles that invest in commingled funds. EFTA00316699 January 22, 2014 5 Hedge Fund] account for more than half the assets of the main fund, which Discount Offered, With a Catch totaled $466 million as of Dec. 1. Bow Street is adding a share class to its sole hedge fund, In 2012, Hogan spun off Altura Credit Fund from Capstone offering lower fees to investors who are willing to abide by to form Altum Capital. The flagship vehicle returned 15.5% stricter liquidity terms. both in 2013 and 2012, following gains of 11.1% in 2011 and The event-driven equity shop set out late last year to raise 36.5% in 2010 — its first full year of trading. $150 million for the so-called acceleration class, and so far In the third quarter of last year, Altum took a break from has attracted about $90 million. Half of the fresh capital came fund raising, partly to restructure the European vehicle to from Blackstone, whose Blackstone Strategic Alliance Fund 2 accommodate more investors. Both funds — Altum Credit supplied $100 million of seed money for the firm's July 2011 and Altum European Credit — are now accepting fresh capital. launch. When it comes to Europe, Altum Credit invests alongside the Along with the new contributions, Bow Street allowed existing European-debt fund. limited partners to reallocate money from the main share class Alturn's capabilities in the European market got a boost of its vehide, Bow Street Master Fund. It's unclear if Blackstone late last year, when the firm hired senior analyst Alexi Kra* exercised that option in addition to making its fresh contribu- line from ClUgroup. Prior to Capstone, Hogan spent 17 years tion, given that the investment giant still may be operating under at Bear Steams, where she traded mortgage bonds and CDOs a lockup that would prevent it from moving its seed money. using bank capital and helped run the first CDO-trading desk Investors in the new share dass pay fees equal to 1.5% of on Wall Street. 4• assets and 15% of profits, compared to a 2% management charge and 20% performance levy for other share classes. In exchange, shareholders must agree to a one-year "soft lockup;' Leucadia _From Pagel during which withdrawals would be subject to penalties. Black- of $25 million and pay fees equal to 2% of assets and 20% of stone, the anchor investor in the new class, is leaving its added investment gains. capital untouched for three years. Zervos joined Jefferies in 2010 after a stint the year before All told, Bow Street now is running about $250 million. as a "visiting advisor' at the Federal Reserve Board, where he As part of its pitch, the New York firm is pointing out that its had earlier worked as a staff economist. He also has managed Bow Street Master Fund produced a 19% gain last year despite global-macro portfolios at Brevan Howard Asset Management maintaining a relatively low net exposure of 35%. and UBS O'Connor. Bow Street is led by former Brahman Capital executive Akin In market commentary published by Jefferies last week, Katz and Howard Shainker, formerly of Third Point. Bryan Mur- Zervos weighed in on the question of how quickly the Fed will ray leads fundraising. wind down its bond-buying program. "While we look ahead to a diminished use of quantitative easing in 2014 and beyond, we should always keep in mind that low short-term rates are Altum Fund Opens to Wider Audience still going to be with us for quite a long time," he wrote. "Thus Structured-product specialist Altum Capital is marketing a far in this cycle we have seen the good and the bad from QE — fund that invests solely in Europe. and now we are approaching the unknown. But as we enter this The New York firm, led by Marjorie Hogan, began trading the more complicated phase of the recovery, rest assured that the vehicle last May with $10 million from a single backer — with Fed remains as committed to a reflationary recovery as ever:" assets since increasing to $15 million. Until now, however, the Leucadia is betting on global macro at a difficult time for fund has been off-limits to other investors. The broader launch the strategy, which accounts for some 20% of hedge fund assets of Altum Credit European Fund reflects the manager's increas- globally. The HEM Macro (Total) Index fell 0.2% in 2013, was ing focus on European collateralized loan obligations. flat in 2012 and lost 4.2% in 2011. Its last positive showing was "We find investors expressing a strong bias towards higher in 2010, when it rose 8.1%. European allocations," Hogan wrote to clients last month. "This Leucadia, a diversified holding company whose businesses is consistent with our own internal view of where we see better range from mining to beef processing, entered the financial- opportunities going forward. In November, for example, Euro- services arena last March with its purchase of Jefferies. Just a pean bonds and loans outperformed the U.S. markets by about few months later, Leucadia bought hedge fund backer Topwater 2-to-1, and we think this outperformance can continue:' and set up an asset-management unit to house the new busi- Most of the firm's assets are managed in its flagship Altum ness. Topwater's founders, Bryan Borgia and Davis Taylor, are Credit Fund, which Hogan launched in 2009 while working at known for pioneering first-loss seed investments in startup Capstone Investment. Although Hogan has been investing in fund operations — deals that require the managers to absorb Europe since 2010, her early focus was on U.S. collateralized any losses. As of October, the Topwater team was managing $50 loan obligations. In the past few years, however, her emphasis million. has gradually shifted to European debt instruments, includ- The global-macro business represents the asset-manage- ing the equity pieces of CLOs and commercial and residential ment unit's second division after Topwater. Overseeing the unit mortgage-backed securities. Indeed, those investments now is longtime Leucadia executive Marc Fuller. •S EFTA00316700 January 22, 2014 6 Hedge Fund] u FIT between research and operations functions. He later took over Somerset Adds Frontier Fund to Menu frontier-markets research and developed the strategy for the Emerging-market specialist Somerset Capital has launched new fund. a long-only equity vehicle that invests in so-called frontier Somerset runs client money in a half-dozen long-only equity markets — economies that still have a long way to go toward programs that have consistently beaten their emerging-market developed-nation status. benchmarks — a point that hasn't been lost on investors. In the The London firm, which manages $3.9 billion overall, began first halfoflast year, the firm took in some $900 million of fresh trading Somerset Frontier Markets Fund last month with $13 capital, prompting it to cut off subscriptions to a vehicle that million. As of Dec. 31, its most concentrated positions were in invests in small-cap stocks. One or more additional funds also countries usually classified as emerging markets: the Philip- are closed to new investments at this point. pines (11.8% of total assets), Colombia (9.7%), Peru (8.5%) and The firm was founded in 2007 by chief executive Edward Saudi Arabia (5.9%). The next-largest concentrations typify Robertson, portfolio manager Dominic Johnson and Jacob frontier markets: Kazakhstan (5.8%) and Vietnam (5.2%). In Rees-Mogg, a Conservative member of the British House of terms of sectors, the portfolio is weighted toward investments Commons. • in financial-services, industrial and telecommunications com- panies. For now, Somerset is marketing the new offering mainly to Boston Co. Hires Emerging-Market Pro institutional investors, funds of funds and family offices in the Boston Company, a BNY Mellon unit that manages equity U.S. In its first month of trading, the fund gained 0.8%, com- hedge funds and long-only strategies, has added a portfolio pared to 0.5% for the MSCI Frontier Emerging Markets Index. manager to handle emerging-market investments. The index finished the year with a 5.6% return, following a gain Gaurav Patankar, previously a portfolio manager at Lock- of 21.2% in 2012, a loss o(17.3% in 2011 and gains of 29.1% in heed Martin Investment, arrived at the Boston operation this 2010 and 25.9% in 2009. In 2008, the index fell by a whopping month. Word has it he'll initially manage portfolios for existing 55.6%. Boston Company funds, but could launch a vehicle of his own The fund's portfolio manager is George Birch Reynardson, down the road. who began his career at Somerset in 2007, splitting his time The firm, which was founded in 1970, had $46.1 billion under management at the end of the third quarter. Most of the assets are in long-only accounts, but it also runs a series of long/short and market-neutral equity vehides, including Long/ Short Opportunistic Equity Fund and TMT Alpha Opportuni- EUROPEAN FAMILY OFFICE ties Fund. Boston Company's clients include family offices, funds of funds, endowments, foundations and pensions. WINTER SYMPOSIUM Patankar spent four years at Lockheed Martin Investment, 10-11 February 2014 - London Hilton on Park Lane, London, UK which manages the defense contractor's pension plan and other The European Family Ortice Winter Symposium will explore the challenges retirement assets. Before that, he worked at Millennium Man- and <mporcunines 2,UK ialed with investing in emerging instketn,alicolitive agement, where he helped monitor risk associated with par- investments, real estate. global credit & fixed income markets along with ticular sectors. • numerous other OKI Apex Thin family offge event is the premier event for high net worth indniduals and family offices. This conference will run in conjunction with the Institutional Investors' Coninto. Dubin From Page 1 Sponsorship and Exhibiting Opportunities arc Available If }vat are interested in attending. sponsoring, speaking or exhibiting at this left the Grn, in 2009 to start a boutique investment shop, Talpton event. plow can 212.5:42-98951 or entail in fOSINIKIVAII• net Fund Management ofNew York Register As for Dubin, he relinquished his role as Highbridge's chief To register. visit us online at wwwopalgroup.net or email us at executive in July, though he is still chairman of the unit. When mar ketinggtopalittoup.nci the bank announced Dubin was giving up his chief executive post, he said he planned to remain at the firm and wasn't retir- REF CODE: EPO1P17WA1403 ing. Forbes magazine pegged Dubin's net worth at $1.7 billion in September. Dubin is the latest in a growing list of hedge fund-industry elder statesmen entering the family-office stage of their careers. ell sae George Soros returned the final $1 billion of outside capital he was managing in 2011, following a similar move by Stanley Druckenmiller, founder of Duquesne Capital and a former lieu- row twill tenant to Soros. Bruce Kovner, founder of Caxton Associates, opened a family office in early 2012. ❖ EFTA00316701 January 22, 2014 7 Hedge Fund LATEST LAUNCHES Equity at Portfolio managers, Launch Fund Management company Strategy Service providers launch (MIL) -— Hunt Lane Capital Fund Denis Puri and Oliver Keller Equity: Long/short Prime brokers: Morgan Stanley, Oct. Domicile: U.S. Hunt Lane Capital, (technology, media and Jefteries New York telecommunications) Law firm: Sidley Austin 917-688-2713 Auditor: Kaufman Rossin Somerset Frontier Markets George Birch Reynardsoo Equity: Long only Law firm: Proskauer Rose Dec. 2 S13 Fund Somerset Capital, Auditor: McGladrey Domicile: U.S. London Administrator: Northern Trust eSee Page 6 44-207-259-1300 Whitehaven Credit Scott Fdchman Credit: Relative value Prime broker: Citigroup Jan. S30+ Opportunities Fund Whitehaven Asset Law firms: Seward & Kissel, Domicile: U.S. & Cayman Islands Management, Maples & Calder eSee Page 3 New York Auditor. KPMG 212-257-4930 Administrator. SSW GlobeOp To view all past Latest Launches entries, visit The Subscribers section of HFAlert.com GAIM INVESTOR February 25-26, 2014 • Hyatt Regency • Cambridge. 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Unitedly Investment Teacher Retirement Teacher Retirement Investment Management United Tnhnologin The Uniterlity of Iowa Mice Systemel Texas System of Texas Coopany Corporation Foundation GAINI Investor offers you exchisive access to our pa/Menne/NE platform so that you can identify and secure meetings with important peers. PartneringONV assists you in managing onetoone meetings at GAIM Investor. Tab advantaged dixienots in scheduling partneringONE* and securing meetings with new investors and managers you wouldn't have otherwise met with by viewing &talky.' profiles of all companies. Booking through partneringONr guarantees you a confirmed lime and meeting space. EFTA00316702 January 22, 2014 8 Hedge Fund THE GRAPEVINE ously worked at Aristarc Capital and been serving as an assistant vice presi- FrontPoint Partners. Sciens, which offers dent on an in-house recruiting team ...From Page 1 a mix of hedge fund, private equity and since arriving in 2010. real-asset products, was running $385 head of risk management at the end million as of yearend 2012. Executive-search firm Atlantic Group of the month to join illackRock's New is setting up a group focused on York headquarters, presumably in Recruiting firm Execu-Search added quantitative professionals. Leading a similar role. McBrady's deputy at two directors to its staff this month. the effort is Gontran de Quillacq, most Silver Creek, Rut Gong, is assuming his Adam Harwood and Sara Katz both recently of HSBC. As a member of responsibilities at the Seattle fund-of- work in the shop's financial-services the bank's New York office from 2007 funds operator. Silver Creek, led by Eric practice, which conducts searches to 2013, de Quillacq helped develop Dillon, has $5.5 billion under manage- on behalf of asset managers, banks quantitative products and managed ment. and brokerages. Harwood focuses on positions in derivatives and equities. assignments involving sales, trad- He also has worked at Nomura and Portfolio manager Fritz von Carp left ing and research openings across the Lehman Brothers. In addition to leading New York equity shop Sage Asset group's clientele, much as he did at Atlantic's new quant practice, his duties Management this month after 11 years prior employer Canington Fox. Katz indude oversight of a group that helps on board:There's no word on von Carp's recruits portfolio managers, trad- diems gather information on their next move. Sage, which invests mainly ers and analysts for hedge funds. She competitors. in the stocks of industrial and financial most recently headed the hedge fund companies, runs a vehicle called Sage practice at recruiter Principle Strate- Separately, Atlantic Group has added a Opportunity Fund that has about $117 gies Group. researcher to its staff. The recruit, Ivy million under management. Cong, focuses on tasks tied to recruiting Glocap Search's hedge fund practice in assignments involving marketing and Sciens Capital has hired a marketing New York has hired a recruiter away investment professionals at hedge fund professional. Tamara Fears joined the from Citigroup. Kristin Sartorius started firms and private equity shops. She pre- shop in the past few weeks, splitting in the past week or two at Glocap, viously was an analyst in the New York time between its New York headquar- whose 10-person hedge fund staff is office of Cathay Capital, a private equity ters and its London office. She previ- led by Anthony Keizner. At Citi, she had shop based in Beijing. TO SUBSCRIBE HEDGE Mr www.HFAlert.com YESI Sign me up for a one-year subscription to Hedge Fund Alert at a Telephone Fax E-mail: cost of $3,897. I understand I can cancel at any time and receive a full Howard Kapiloff Managing Editor refund for the unused portion of my 4B-issue license. Ralph R. Ortega Senior Writer DELIVERY (check one): U Email. U Mail. James Prado Roberts Senior Writer PAYMENT (check one): U Check enclosed, payable to Hedge Fund Alert. Andrew Albert Publisher Bill me. U American Express. LI Mastercard. LI Visa. Daniel Cowles General Manager