Whitney Hedge Fund Gets Backing From BlueCrest Partners

Nov 14 2013 | 10:41am ET

Star analyst Meredith Whitney's new hedge fund has received a vote of confidence from Michael Platt and other BlueCrest Capital Management partners.

Kenbelle Capital started trading November 1 with about $50 million from BlueCrest partners and other investors, reports Bloomberg News, citing a copy of a fund presentation.

Whitney co-founded Kenbelle with Stephen M. Schwartz, a veteran of Guggenheim Partners and SAC Capital Advisors, and has hired Mark Innaimo, formerly of Bay Crest Partners, as a senior trader.

Kenbelle's American Revival Fund targets annual returns of 12% to 17%, and will focus on U.S. equities, seeking to profit from what Whitney predicts will be a cycle of growth in “Heartland” states like Nebraska and South Dakota (a theory she explored in a book, “Fate of the States”).

Whitney, who came to fame in 2007 when she predicted trouble for Citigroup, started an advisory firm Meredith Whitney Advisory Group, in 2009. She closed the firm's brokerage unit earlier this year to focus on the Kenbelle launch.

Meredith Whitney Advisory Group has lost money every year since its debut in 2009 and had lost some prominent customers, among them Elliott Management, Paulson & Co. and Balyasny Asset Management.

Whitney told potential investors in New York this week that she'd started her own investment firm in part because she “was tired of other people profiting from her trade ideas,” said Bloomberg, citing a person who attended the event.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...