|U.S. hedge funds are capitalizing on the recent turmoil among startup European hedge funds and the European debt crisis which has produced a glut of top traders looking for a home. According to Bloomberg, U.S. hedge funds such as SAC Capital Advisors LLC and Millennium Management LLC have been hiring employees in mass from London-based firms that have struggled in the last couple of years. Highly touted startup funds, such as Edoma Partners LLP, launched in 2010 by Pierre-Henri Flamand, formerly of Goldman Sachs, were forced to close last year under the weight of poor performance. Ex-Citigroup trader, Sutech Sharma started Portman Square Capital in 2011 but fell short of his fund raising goal of $500 million and has yet to begin trading for his clients. Occitan Capital Partners and Benros Capital Partners LLP are also among the London-based hedge funds that have recently been raided by U.S. hedge funds.|
Minnesota-based Pine River Capital Management LP struck gold when it plucked a couple of high profile traders from the European hedge fund carnage – Evan Pearce, an Edoma Partners LLP partner, and former Citigroup trader, Paul Godfrey from Portman Square Capital. Another Edoma partner, Oliver Haslam moved over to Millennium Management LLC, Paul Selvey-Clinton from Occitan Capital Partners recently joined SAC Capital Advisors. Other hedge fund firms which have benefited from the European trader glut are Citadel LLC and Arrowgrass Capital Partners LLP.
|Hedge Fund Lists|
According to Bloomberg, recent European startups have struggled due to the sovereign debt crisis, and also because of the difficulty ex-bank hedge fund traders have in transitioning to privately run hedge funds where the trading psychology is vastly different. The pressures of generating short-term results are often new to bank traders who are only required to hit a yearly profits target.