Sunday, 21 December 2014
Last updated 3 hours ago
May 8 2008 | 10:15am ET
In his effort to cut Merrill Lynch’s hedge fund investments, John Thain is bidding farewell to one of his firm’s top traders.
Boris Ehsani is leaving Merrill after the Wall Street giant shelved plans to spin off his principal credit group as an independent hedge fund. Ehsani, who has worked at Merrill for 23 years, will instead go at it alone, setting up his own hedge fund shop with backing from other investors, Bloomberg News reports.
The principal credit group manages more than $2.8 billion and has been among Merrill’s best-performing groups. While Merrill’s overall revenue plummeted 67% last year, principal credit’s revenues soared 62%. The group invests in out-of-favor equities and private companies planning to go public.
As recently as last month, Merrill sales materials indicated that principal credit would create an independent hedge fund in which Merrill would be a significant investor. Merrill was reportedly prepared to seed it with at least $500 million, after developing plans for the fund for more than two years.
Ehsani’s top deputy, Mark Devonshire, also plans to leave Merrill and may join Ehsani’s hedge fund.
Meanwhile, what’s left of the currently 30-strong principal credit group will be merged with a distressed-debt team. The latter group lost its leader, Graham Goldsmith, to hedge fund Strategic Value Partners in February.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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.