Cohen Leads Wave of Hedge Fund Startups After Year of Retreats

After a cohort of hedge fund veterans called it quits last year, a trio of established managers are prepping to fill their shoes in 2018 by starting firms with at least a billion dollars apiece.

Daniel Sundheim, who until last June was investment chief at Viking Global Investors, Michael Gelband, who about a year ago surprised his boss Izzy Englander by quitting as Millennium Management’s head of fixed income, and Steven Cohen, the billionaire who until January was barred from trading client money after his old firm pleaded guilty to securities fraud, plan to roll out their long-anticipated funds.

The startups — and in the case of Cohen, a comeback — are attracting attention as the number of traders venturing out on their own has been declining since 2011. Hedge fund managers have been confounded by reduced price swings, while investors have revolted against high-fee funds whose performance has been underwhelming. John Griffin, Eric Mindich and Andy Hall were among those who threw in the towel last year.

Source: BloombergMarkets

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