Thursday, 24 July 2014
Last updated 9 min ago
Jan 14 2014 | 11:32am ET
Add Jake Weinig and Joseph Aiken to the list of Goldman Sachs alumni starting their own hedge funds.
The former Goldman vice presidents have raised more than $25 million for their Malachite Capital Partners, according to a source with knowledge of the fund.
Malachite is a "global market neutral equity volatility fund," according to Weinig, who told FINalternatives in a phone interview they “are looking essentially to take advantage of differences in supply and demand across global vol markets, capturing vol premium where vols are rich, and buying cheap vols where they're cheap.
“We think of it as a diversifying hedge fund asset, although it would fall into an absolute return bucket...Traditionally, vol funds have fallen into two buckets: either a tail-risk fund, which we are not, or you could have more of a traditional arb fund where you're investing in 10,000 line items and hoping to win on 6,000 of them. We are much more targeted, trying to be thoughtful about it and really trying to create an absolute return-type profile that should be able to perform throughout most market environments.”
In addition to Weinig and Aiken, New York-based Malachite Capital Management employs CFO Michael Kostolanksy, formerly of Citi hedge fund spin-off Spartus Capital.
Minimum investment for the new fund is $500,000; fees are 1.5 and 20 (after a 2% hurdle); and Weinig said their longer-term goal is to manage “just under $1 billion.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…