Insights from a Multi Billion-Dollar Hedge Fund Founder on a Game-Changing Move

Michael Platt, Stanley Druckenmiller, George Soros and Julian Robertson…

Have you ever wondered why some of the world's most successful hedge fund titans returned capital to investors??

I recently had an exclusive sit-down with a founder of a renowned multi-billion dollar hedge fund who's made this very move.?

Read on to discover his unique new business model and the untapped opportunities it presents...

??

Q: Why did you decide to return capital to investors and solely focus on deploying your own?

A: For two main reasons:

• Passion for Trading: The success of the fund began to pull me in different directions. I found myself spending more time with investors and less time immersed in what I truly love – trading.
• Flexibility and Risk: Returning capital allowed for greater freedom in my trading decisions. I can now take on bigger bets, diversify across various asset classes, and maintain a sharper focus on each trade.

Q: What is your approach now??

??

A: People in our industry regularly come across outstanding trade opportunities they cannot action themselves, either because it’s not in their mandate or because they don’t have the capital. ?

?

The amount of value left on the table by the “I wish I could do it”?trade is staggering. ?

So, I decided to create the infrastructure for these trade ideas to come to life. ??

?

On a day-to-day basis, I spend a lot of time with external portfolio managers, traders, research analysts and specialised brokers to exchange ideas and identify the best people and strategies. ?

??

?

Q: What makes you different from a multi-strategy platform???

??

A: We’re here to fill the gaps left by large multi-strategy platforms, hence there is little overlap.?

This is a rare chance to tap into trading opportunities that these hedge funds can’t/won’t access.

Some of our experts eventually join these platforms, but others focus on strategies which are extremely profitable but not scalable and wouldn’t fit the business-model of such multi-strats.

?

As we are private and deploy our own capital, we are also more flexible in our compensation structures and capacity to execute trading strategies.?

?

Q: How does it work in practice??

??

A: We typically test people with a small capital allocation and once they earned our trust, we structure win-win partnerships.

Two recent examples: ?

• We teamed up with a former bank trader and helped him leverage our infrastructure to execute and co-invest in his profitable strategy.
• We hired as a consultant an ex-PM in a large multi-strat who wanted to stay in the market before taking another job.?

?

In short, we give outstanding market players a free option to monetise their expertise but are, in return, extremely selective.??

??

Q: Tell me more about what trade ideas you look at??

??

A: Our mission is to uncover the best event-driven, relative value, macro and credit opportunities. Since they don’t occur very often, we need multiple strategies and rely on a growing network of experts. ?

?

We typically like:??

• Market dislocation trades. An example could be trading CLOs in 2009, merger arbitrage in 2020 or ITRAXX tranches in 2022. ?

• Arbitrage / Market Making trades. An example could be two flows of the same or similar product, derivative or other, which can be monetised by buying one and selling the other.? ?

The threshold for us to allocate is very high as we are looking at trades where the risk-reward is truly asymmetric. ??

Next steps

Imagine leveraging a platform that transforms those 'wish I could do it' trade ideas into tangible, profitable results.?

If you're a PM, trader, research analyst, specialised broker or structurer/salesperson with a proven and profitable strategy or trade, this is your chance to collaborate with one of the industry's visionary leaders.

Reach out & I will make an intro.

Cheers,

Mani

#HedgeFunds

#Porfoliomanager

#trader