Weekly round up

Quant Vatic adds hedge fund-style trading team

Quantitative trading firm Vatic Investments, drawing influence from the systematic hedge fund Renaissance Technologies, is reported to have recruited a fresh team tasked with executing statistical arbitrage strategies using client funds, as per eFinancial Careers. This development follows a two year gap since Allen Poteshman, the former Head of Statistical Arbitrage appointed in 2021, departed.

While the recruitment of the new traders has been confirmed, their operational commencement is pending, potentially due to non compete agreements with their previous employer. The statistical team is anticipated to collaborate with Vatic's existing high frequency trading team based in New York.

Point72 and Capstone make Milan move

Steve Cohen's Point72 Asset Management and Paul Britton's Capstone Investment Advisors have expanded their operations in Europe by opening offices in Milan, as reported by Bloomberg. Point72, overseeing approximately $31 billion in assets, recently established a location in the northern Italian city, expanding its presence beyond existing offices in the UK, France, and Poland.

Capstone, managing around $11.5 billion, made its move to Milan in January. This addition to their European network, which already includes offices in Amsterdam and London, aligns with the firm's expansion strategy. Milan has seen increased interest from hedge funds in recent years, with other firms like Eisler Capital, Andera Partners, Arcmont Asset Management, and Certares Management also setting up a presence in the city.

Hedge fund First Seagull swoops on Superdry stake

Norwegian hedge fund First Seagull has bought a 5.3% share in Superdry after the company faced multiple profit warnings and a decline in its stock value. The hedge fund sees the UK based retailer as a potential target for a takeover bid, as reported by The Times. Superdry's stock has plummeted nearly 90% in the past year, with the latest profit warning attributed to unexpected weather conditions leading to excess inventory of coats.

Currently, Superdry is working with PwC advisers to explore options like a company voluntary arrangement or other forms of restructuring. This may result in significant store closures and job reductions for the company, which operates in 48 countries through 216 physical stores and 369 franchisees and licensees, employing over 3,350 people globally.