Ex-Goldman Prop. Chief To Shut Hedge Fund Edoma

Nov 2 2012 | 2:25am ET

Two years ago, Edoma Capital was one of the hottest new hedge funds around. Today, it is no more.

The London-based hedge fund, founded by former Goldman Sachs proprietary trading chief Pierre-Henri Flamand, told clients yesterday that it would close its doors after failing to live up to expectations. The fund, which launched in November 2010 with more than US$1 billion in commitments, has lost 6.9% since inception and 4.9% this year. Those disappointing returns have seen fund's assets, once as high as US$2 billion, fall to about US$855 million.

"This is very disappointing for everyone concerned," Flamand said in a statement yesterday. "Considering the unprecedented market conditions, we felt the most responsible course of action was to return money to investors and cease investment activity."

It will take as much as four months to affect that plan, as Flamand and Edoma's staff wind down and liquidate the event-driven fund.

Edoma's quick demise puts an end to one of the more promising new hedge funds to result from the Volcker rule, which strictly limits banks' alternative investment activities and bars proprietary trading. Flamand spent several months after leaving Goldman building a top-notch team, but the firm's difficulties saw some of those staffers leave in recent months. Last month, two partners, Oliver Haslam and Casper Lund, announced their departures.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.