Absolute return hutchin hill opens - april 2010


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Absolute return hutchin hill opens - april 2010

  1. 1. 8 ~ntelligence Hutchin Hill opens I Bellman Wa,lter shuts I Fees stay h1gh Throughout2008the Chriss learned computer pro- erated strong returns and at fund benefited from gramming when he was 11 its peak ran two- thirds of the its focus on remaining years old. SAC Multi-Strategy funds as- hedged and having ex- He earned a Ph.D. in math- sets. Chriss left in early 2007 to tremely low exposure ematics from the University form Hutchin Hill, before the and low correlation to of Chicago and in 1998 joined quant crisis hit in August 2007. the markets. Goldman Sachss quantitative "I saw it all coming, of course, Chriss first met strategies group, where he so I decided to take the year Simons on the board became a portfolio manager off; Chriss joked at the 2007 of Math for America, a and ran a volatility arbitrage Absolute Return Symposium. New York foundation book for the firms Global While tens of billions of that promotes math Alpha fund. dollars flowed into quants, education in New Chriss left Goldman in volatility appeared low, which York City schools. 2000 to found iCor Brokerage, led quant managers to increase "I dont think a derivatives trading fum that leverage. This in turn led to Neil Chriss theres anyone out was later sold to Reuters. an overlap of names held by there dose with both In 2003 Cohen hired Chriss quant managers. finally opens Stevie Cohen and Jim to build a quantitative trading "People talk about the dom- Simons; said an indi- desk at SAC. The division gen- ino effect, and its ironic that Hutchin Hill vidual close to Chriss. Dominos Pizza has an actual "Theyre both geniuses stock, and it was something to outside but with different that was in the 13Fs of a lot of styles. Neil is the quant funds; Chriss joked. ca:pital bridge between those two styles: II The former SAC The quant meltdown of 2007 was reminiscent of Long•.::··: Capital Advisors Chriss is one of the Term Capital Managements After db~ting strong returns in worlds most seasoned quants. quant chief has implosion in 1998, which 2008 and 2009, Hutchin Hill He is one of 25 quantitative opened to outside revealed a surprising correla- Capital, founded by former professionals profiled in the capital after produc- tion between merger arb and SAC Capital Advisors quant 2007 book "How I Became a ing two years of emerging market debt. chief Neil Chriss in late 2007, is Quant; which revealed that impressive returns II - Suzy Kenly marketing to outside investors for the first time. The fund, Hutchin Multi- Strategy, launched in July 2008 with $300 million from the Meritage Fund and Renais- SAC vets dissolve Bellman Walter sance Technologies founder Jim -7A fonner star trader for Steve Cohens SAC Capital has Simons $7 billion family office, which manages money for sev- found less success with his post-SAC venture. Bellman Val- eral Renaissance partners. ter Capital, the long/short equity shop co-founded in 2008 Once he launched the firm, by former SAC Capital Advisors short-term trading star Rich Chriss immediately closed Hutchin Hill to outside inves- Walter and another SAC veteran, energy trader Jeff Bellman, tors. The firm manages $400 has closed shop. Calls to the firms San Francisco headquar- million and is hoping to reach ters are now met with a recording saying that the firm has $1 billion, according to a source close to the firm. been closed since December 31. The firm also had an office in Hutchin Multi-Strategy London, which ceased to be authorized by the Financial Ser- invests in all liquid markets, vices Authority on February 10. Bellman Walter launched with including equities, credit and about $650 million, but according to its latest filings with the currencies. The fund gained 13% in 2008 after launching Securities and Exchange Commission, the firms equity portfo· that July and rose 17% in 2009. lio was already empty as of December 31. Robert Murray APRIL 2010 • W VfW.A BSOLUTERETURN-ALP iiA.COM