Former SAC Trader Raises $200M For Emerging Markets Hedge Fund

Nov 23 2011 | 1:08pm ET

Former SAC Capital Advisors trader Ali Akay has raised $200 million for an emerging markets hedge fund that will launch next week.

A source familiar with the situation told Reuters that London-based Carrhae Capital will begin trading on December 1, investing in emerging markets equities. The source said the fund would look to soft close at around $500 million in early 2012.

Reuters did not say whether Blackstone Group was among Akay’s initial investors. In September, Bloomberg reported that Carrhae, which has a six-member team, including two other former SAC traders, was in advanced talks with Blackstone about the latter providing seed capital. A spokesman for Blackstone Group told FINalternatives she could not comment on the matter.

Ali Akay left SAC's European unit in the summer to found Carrhae, named after a 1st century B.C. battle in which the Parthians, the ancient rulers of what is now Iran, decisively defeated the Romans in what is now Akay's native Turkey. The Roman catastrophe was the result of "arrogance, an inability to listen to [the commanding generals'] local allies, impatience and a lack of understanding of the local circumstances," Akay told Bloomberg News. "It reminds us that when you are going into emerging markets, you definitely want to know the local conditions and have a local network."

Prior to joining SAC, Akay worked at HBK Investments and Goldman Sachs Principal Strategies.

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