Guggenheim Hedge Fund Arm Seeks New Managers

Jan 30 2013 | 2:40pm ET

Guggenheim Partners is poised to ramp up its multistrategy hedge fund business with the addition of as many as 10 new portfolio managers this year.

Guggenheim Global Trading currently has 15 managers in-house, managing more than $500 million in Guggenheim Partners' assets, as well as some outside capital. But Guggenheim has pledged as much as another $1.5 billion to GGT, which debuted a year ago, and GGT is interviewing several possible candidates as it aims to increase its stable of managers to as many as 25 by the end of 2013, Bloomberg News reports.

While GGT features long/short equity, event-driven, merger arbitrage and quantitative strategies, it's currently looking for just the former, seeking out sector-specific managers. Among the strategies it hopes to add are energy, healthcare and utilities, Guggenheim Partners' Loren Katzovitz and Patrick Hughes said.

Katzovitz said he and Hughes are looking for managers who can earn "high single-digit returns" with net exposure of between 15% and 20%. New members of GGT's portfolio management team must also be willing to submit to investment guidelines agreed with the two Guugenheim partners.

In return, the managers will get about 15% of the performance fees they earn and the ability to take a stake in GGT after two years; the more profitable a manager, the more equity he or she can take. And GGT will insulate them from the non-investment aspects of running a hedge fund.

"A lot of these guys are attracted because they don't want to have to set up their own infrastructure and raise all the capital," Katzovitz told Bloomberg.

As part of the expansion, GGT, which is based in Purchase, N.Y., may open an office in London. Katzovitz said it is also looking at opportunities in Japan.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

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 fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.