Ex-Goldman VPs Launch Malachite Capital Partners

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.”


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of