Caxton Associates' co-founders will retire at the end of the year, handing the reins of the firm over to its chief investment officer.
Bruce Kovner, the hedge fund's chairman and CEO, and Peter D'Angelo, its president, will remain investors and owners of "substantial minority stakes" in Caxton. Kovner said he will also continue to keep an office at Caxton's New York headquarters and will continue to invest in pharmaceutical and medical technology companies.
CIO Andrew Law will become chairman and CEO on Jan. 1, Caxton, which has about $10 billion in assets under management, told investors in a letter today obtained by Bloomberg News.
"After 34 years in the trading business and more than 28 years leading Caxton, the time has come to hand the leadership of the company to a new generation," Kovner wrote. "I do so knowing I will miss the adrenalin rush of confronting markets every day but also confident that new leadership will carry on the traditions, style and substance of Caxton's successful history."
Kovner has been grooming Law as his successor since 2008. Law, who joined Caxton in 2003, manages about 20% of Caxton's flagship Global Investment Fund, employing a style described as very similar to Kovner's.
Law, who is based in London, spending about a week per month in New York—a practice he will continue—will not run Caxton by himself. He plans to create an operating committee next year to handle the day-to-day management of the firm. John Forbes, chief operating and financial officer, Mike Bolitho, back-office chief, and Scott Bernstein, general counsel, will join Law on the committee.
Law also plans to soft close Caxton, limiting the amount of money it will take from new investors.