eFC Briefing: New Hedge Funds on Hiring Spree

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New hedge funds are forming, which bodes well for at least a few investment professionals and other staffers.

Lehman Brothers' former securitization chief David Sherr started One William Street Capital Management, a hedge fund company focused on mortgage-backed and asset-backed securities. A two-decade veteran of Lehman when he left the firm last December, Sherr expects to attract more than $1 billion from Lehman and other investors by June, says Bloomberg News. Meanwhile, Financial News reports five other, unnamed principals from Lehman will join Sherr's venture. While the mortgage meltdown has wreaked havoc on Wall Street and destroyed such hedge funds as Peloton Partners and Sailfish Capital Partners, Bloomberg says the crisis also has spawned at least 10 high-profile fund startups managing more than $1 billion each. Over the next year or two, these new funds can be expected to hire investment professionals and support staff.


GAM, a hedge fund unit of Julius Bäer Group, hired Richard Silver to head its multi-manager team in New York, a newly created role. He will be a member of GAM Multi-Manager's investment management committee and will co-manage the lower volatility version of a multi-strategy fund of hedge funds along with David Smith, chief investment director of GAM Multi-Manager. The firm also hired Jeffrey Rose as investment manager on the multi-manager team. Both men join GAM from Condor Capital, a U.S.-based fund of hedge funds boutique. Silver also ran derivatives sales, trading and money management strategies earlier in his career at Bankers Trust and UBS, among others.


Private equity firm Permira named Daniel M. Healy as senior advisor in New York. The former North Fork Bancorporation executive will advise Permira on opportunities across a number of sectors, with a focus on financial services. Healy was North Fork's CFO from 1992 until 2006, when it was acquired by Capital One in a deal he helped orchestrate.


Quadrangle Group hired Alice Ruth as a managing principal and chief investment officer for Quadrangle Asset Management. The firm, controlled by Steven Rattner and focused on investing in media and communications companies, was named in January to manage the personal and family foundation assets of New York City Mayor Michael Bloomberg. Ruth most recently served as chief investment officer of the Gordon and Betty Moore Foundation's $6 billion investment portfolio. Before that she was co-director of equity research at Banc of America Securities/Montgomery Securities.


Bear Stearns' shotgun wedding with JPMorgan sparked a feeding frenzy among rivals trying to lure away high-producing brokers. Competitors Merrill Lynch, Morgan Stanley, UBS and Citigroup's Smith Barney wealth management division dangled signing bonuses equal to two years' production, the New York Times reports, citing search consultant Mindy Diamond. For some of Bear's 550 brokers, that would amount to $2 million or more. Morgan Stanley succeeded in hiring 12 Bear employees who generated a total of $26.5 million in revenue, the Times says.

By late last week, JPMorgan Chief Executive Jamie Dimon reportedly was scrambling to fend off the raids, appealing to rival CEOs to stand back, and also offering hundreds of Bear senior managing directors incentives to remain aboard. JPMorgan and Bear subsequently announced revised terms more generous to Bear shareholders than the original $2 per share deal unveiled a week earlier. The deal will remain controversial among Bear employees who collectively own more than 30 percent of the company. But a headhunter told eFinancialCareers News the higher price may "dissipate" some of the anger.


Bill Geisler joined Malbec Partners as portfolio manager for its emerging markets hedge fund. He previously ran Amaranth Advisors' emerging markets strategy and was global head of Lehman Brothers' emerging markets fixed income business. Lars Pedersen joined Malbec as senior research analyst and strategist. Pedersen was a senior economist at the International Monetary Fund and previously worked at Lehman. Malbec, a subsidiary of BNP Paribas, also hired Ryan Sheftel, David Horowitz and Ian McDonald as portfolio managers for its quantitative multi-strategy fund. Sheftel joins Malbec from Citadel Investment Group, Horowitz came from Morgan Stanley Investment Management and McDonald previously worked at Goldman Sachs.


Goldman Sachs reportedly plans to eliminate up to 15 percent of jobs in its capital markets division, according to the New York Post. The story also says that Citigroup is cutting 6,000 trading and investment banking jobs this quarter, or nearly 2,000 more than disclosed in January.

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