According to PivotalPath research, over 40 high-profile hedge funds launched or will launch this year. Capital fundraising restraints choked this trend to some extent during the latter part of 2023, but indications are that single-strategy funds are once again gaining momentum.
Multiple Hedge Fund Debuts Lined Up For 2024
Reuters indicated that top-performing traders from investment companies such as Citadel, Lone Pine Capital, and Oaktree Capital Management want to initiate their own ventures. Those in trading circles usually closely follow these moves as investors look for replication and growth values. The newsagent quoted Jon Caplis, PivotalPath’s chief executive officer, who said:
Many of these people have done extremely well and may be looking for something more independent.
Other industry-leading brokers and investors reportedly confirmed the expectance of an influx of new hedge funds. Based on Reuters information, a previous portfolio manager at Citadel, Tommaso Trento, aims to establish Benchstone Capital Management, which allegedly will concentrate on consumer, technology, media and telecommunications assets. The Reuters source said Trento is seeking $750m in funding for this initiative.
Another former Citadel portfolio manager, Chiki Gupta Brahm, is expected to launch Tessellis Capital Management, while a once Lone Pine Capital partner, Arthur Wit, wants to establish a hedge fund focused on global healthcare and industrials. However, the leaders in the multi-billion-dollar hedge fund launch pack are expected to come from Millennium Management’s co-chief investment officer, Boddy Jain and a Capula Investment Management spin-off steered by Nat Dean, a partner in the company.
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PivotalPath stated that in 2023, hedge funds delivered an average return of 7.7%.
