Ex-Citigroup Prop. Trader To Launch Hedge Fund

Jan 2 2013 | 1:39pm ET

One of Joel Salomon's New Year's resolutions was apparently, “Launch a hedge fund,” because the former Citigroup proprietary trader plans to do just that this month.

SaLaurMor Capital, a long-short fund named for Salomon daughters Lauren and Morgan, will be based in New York and focus on small and mid-cap financial stocks—initially insurance companies and asset managers, but eventually the credit of financial firms.

Salomon, who ran a $700 million peak-value stock portfolio within the equity principal strategies group at Citigroup prior to his January 2012 departure, hopes to raise about that amount for his new venture. (Citigroup closed the equity group to comply with looming regulations barring banks from betting their own funds on securities and markets.)

The fund will trade in European, North American and Asian markets.

“Europe clearly has much cheaper valuations than the U.S. but the macro headwinds are much more significant there,” Salomon said. “We found that there’s substantial value in a fair number of European insurance companies. If you look at dark-cloud scenarios, there’s downside in Europe as well,” Salomon told Bloomberg.

SaLaurMor will hold stocks for 12 to 24 months, on average, he said, adding that he sees opportunity in undervalued and overvalued companies and those not affected by interest rates or regulations.

“We’re looking at companies that are not subject to that kind of regulation, like reinsurance companies, and we’re looking at fee-based companies, like insurance brokers. Even in years like 2012, there are some companies down 30 to 50% and others up 50% or more.”

Salomon has hired a senior analyst and said he'll probably add another analyst and an operations manager for the launch.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.