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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.