Founder, Saba Capital Management, New York
B oaz Weinstein joined Deutsche Bank in 1998 and became a Managing Director at 27. He rose to responsibility for over $10 billion of proprietary trading assets, deployed mainly in capital structure arbitrage. He is said to have been profitable every year except for 2008, when losses were caused by the record blow out in the gap between cash and derivative instruments. In some years he was said to have been paid bonuses up to $40 mn. Weinstein was Global Co-Head of Credit Trading when he left Deutsche last year, taking
Founder, Pentwater Capital Management, Chicago
athew Halbower is one of many Deephaven alumni to start his own fund. Halbower had been in charge of credit, merger arbitrage and event driven strategies at Deephaven but started Pentwater with $700 million in 2007. Pentwater has sometimes taken an aggressively activist approach, trying to get boards of directors replaced (Post Properties) and accusing takeover targets of using poison pill defence tactics (Mittal’s bid for Arcelor). The fund has also pursued litigation against banks in 2008 M
Founder, Ion Asset Architecture, London
ennis Lohfert spends most of his day developing trading strategies and refining algorithms for Ion Asset Architecture. This software is critical for analysing millions of data points at the tick level. As part of the firm's strategy to be able to analyze data in 50 or more dimensions, he developed a computational grid that he trademarked the Ion Interconnected Computational Cluster (IonICC). Now only 31, in his twenties Lohfert developed an application called TITANIVM (a simple acronym for Theta-Immunized D
Trader, Moore Capital. London
att Carpenter’s departure from Citi’s proprietary trading unit follows the bank’s spinning off of its commodity trader Philbro, whose manager Andrew Hall has set up his own shop. In contrast Carpenter will join Moore Capital and take his deputy Matt Newton with him. The two of them were previously trading single stocks for Citi. The $1 billion of capital they were believed to be managing pales in comparison with Moore’s $14 billion AUM. Carpenter has cited proposals to limit bank M
Co-founder, Bluegold, London
F rench national Andurand began at Goldman Sachs and then traded oil derivatives in Singapore (Bank of America and Vitol) and London (Vitol) before starting his own fund with the somewhat older Dennis Crema in London. The fund has a broad repertoire of trade types. Geographic, calendar, inter-market, and intra-market spread trades have been done and the fund also makes directional up bets, down bets, and volatility bets in all areas of the energy complex. Unlike CTAs, the fund is completely fundamental
IN ASSOCIATION WITH
15 of his former colleagues with him to set up Saba, which launched in 2009 with seed capital of $200 million. The fund, which now manages $1 billion, has been profitable every month since inception. In May, Weinstein opined that corporate credit markets were halfway towards a bubble situation where investors would not get paid for risk. A Life master of the US Chess Federation, Weinstein studied philosophy at the University of Michigan and worked for Merrill Lynch and Donaldson, Lufkin, Jenrette after graduating.
when private equity buyers walked away from Clear Channel. Recently in March 2010 Pentwater took legal action alleging that Talbot and BPW were trying to persuade warrant holders to accept worse terms than previously agreed. Although 87% of warrant holders have accepted the offer, Pentwater, which owns 9% of the warrants in question, was trying to get a better price. If deal breaks contributed to some losses in 2008, then deal consummations helped generate a 67% return in 2009 that more than recovered 2008 losses.
Trading Across Normalized Implied Volatility Matrices... a system that performed automated volatility relative value trading). His 12 years of proprietary trading experience includes high frequency systematic trading for Saxon Financials UK. Since inception in November 2007 the Ion fund is up over 37% and, interestingly for a CTA-esque trader, it made 5.7% in 2009. Unusually, Ion charges a 30% performance fee and no management fee. Lohfert lectures on systematic and algorithmic trading at several universities and generally avoids publicity.
proprietary activities as a motive for his move, and subsequently Citi chief Vikram Pandit stated that banks should not speculate with their capital. In any case, proprietary trading has dropped to a single digit percentage of Citi’s profits, quite unlike Goldman where it is often the lion’s share of earnings. Other departures from Citi include ex-Caxton macro trader Jay Glasser, who went to Japanese bank Nomura, and just recently Lars Schonander, who announced he would join Carpenter and Newton at Moore.
and discretionary in its analytical approach. Andurand has always believed in doing his own research on supply and demand imbalances, and he spends a lot of time monitoring data on inventories and shipments. Spectacular 2008 performance over 200% came from catching decent chunks of both the spike and the subsequent crash in oil prices, as well as profiting from the explosion of implied volatilities. Performance for 2009 was up 55%. The fund always structures trades with an asymmetric risk reward profile.