Trafalgar Co-Founder Sidelines Goldman With New Hedge Fund

Jun 28 2011 | 1:18pm ET

Trafalgar Asset Managers co-founder Lee Robinson is starting a new hedge fund, and investors and backers of his old firm—notably Goldman Sachs—are fairly furious about it.

Robinson has founded Altana in Monaco and has already registered the new firm with the U.K. Financial Services Authority. The creation of the new firm comes just months after Trafalgar's flagship Catalyst fund, which he managed, was liquidated in the face of investor redemptions.

Altana will manage a global macro strategy, which has been a source of contention between Robinson and Goldman, as well as other investors. Robinson had wanted to launch such a fund at Trafalgar, but was blocked by opposition from Goldman, whose Petershill private equity fund owns a minority stake in Trafalgar, and other investors, the Financial Times reports.

So, with his old fund just a memory, Robinson moved forward with plans to launch his global macro venture, without Goldman and outside of Trafalgar.

That's not sitting well with Petershill, which is afraid that Robinson's effective exit from Trafalgar will hurt the value of their stake in the firm. The sides are still talking—Trafalgar said in April, when the Catalyst fund was felled, that it hoped to relaunch the event-driven fund in the future—and the FT reports that Petershill might take a 10% stake in Altana to smooth things over.

Robinson, for his part, is moving forward with his plans for Altana, spending last week at the GAIM conference in his hometown seeking to line up potential investors.


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