Blackstone Hires First Traders For Huge Concentrated Stock Fund

Aug 29 2014 | 8:24am ET

The Blackstone Group is recruiting traders from some big-name hedge funds for its planned big-bet best ideas vehicle.

The alternative investments giant is set to launch the multi-billion dollar hedge fund in a few weeks. And Blackstone Senfina Advisors has now hired the first traders for the vehicle, The Wall Street Journal reports.

Those joining the effort include former Ziff Brothers Investments energy chief David Briggs and former Serengeti Asset Management trader Billal Sikander. The fund has also hired former Citadel Investment Group risk-management chief Sasi Digavalli, former Ziff Brothers operations chief Brian Siegel and former Deutsche Bank executive Daniel Haff. Digavalli and Siegel will help oversee Senfina, which is led by top Blackstone executives J. Tomlinson Hill, Parag Pande and Gideon Berger. Haff will cover compliance matters.

Each trading team at Senfina will get up to $500 million to seed their strategies. Each will also have their own management companies, rather than joining as Blackstone employees, giving them a head-start on an eventual spin-off as independent hedge funds—although they are required to manage Blackstone’s money exclusively for the first year. Briggs and Sikander will each get $100 million and will be permitted to use more than four-times leverage.

Senfina, which means “everlasting” in Esperanto, will be based down the block from Blackstone’s New York headquarters. It won’t just feature Ziff Brothers veterans—Pande also worked at the family office before joining Blackstone—but will consciously seek to replicate its market-neutral, multiple-trading-team model.

Teams will receive a flat management fee from Blackstone, with bonuses paid out for returns that top the broader markets. The firm expects each team to beat indices by at least four percentage points over the long term, with a concentrated portfolio of high-conviction trading ideas.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Expert Says Scale Of Baillon Classic Car Find Rare

Dec 29 2014 | 3:40am ET

Forget about hedge funds, buying rare, classic cars could be called the ultimate...

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.