This $1.2bn hedge fund centred around a star trader makes £5m, pays £450k
While the hedge fund industry as a whole struggles, there are a few start-ups headed by star names that are hoovering up assets and posting impressive performance. Think Chris Rokos at Rokos Capital Management, or Edward Eisler at Eisler Capital Management, both of which have been hiring and attracting big names.
Another fund beholden to a star at the helm is EDL Capital, the macro hedge fund set up in September 2015 by former Moore Capital Management money manager Edouard de Langlade. EDL Capital started out with $200m in assets under management, but reportedly increased this by 500% last year and is set to close the third quarter of 2017 with $1.2bn after returning 18.4% in 2016.
EDL Capital has now just published its first annual results – for the year 31 December 2016. It made a £5m profit on the back of £10m in revenues last year, following a £589k loss when it was getting off the ground in 2015.
While Rokos Capital Management nears 30 employees in London and has been capturing former Goldman Sachs, Barclays and Credit Suisse trading managing directors, EDL remains a tiny shop. It has just five employees including directors and, aside from de Langlade, most are either operational roles or execution traders. The only hire since 2015 is Tommy Pulling, who joined as an execution trader from Camares Capital earlier this year.
EDL Capital paid its five employees £2.3m last year, or an average payment of £452k. Meanwhile, its highest paid director – presumably de Langlade – received £717k, up from £120.1k in 2015.
While EDL Capital is increasing assets under management, there has not been a simultaneous build out of new employees. Instead, it appears to be keeping the assets centred around de Langlade himself.
This is a trend among macro hedge funds. Alan Howard raised $700m for his own fund at Brevan Howard earlier this year, while its star trader Alfredo Saitta is like to receive up to $400m for a new fund, according to the WSJ.
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