Tuesday, 28 February 2017
Last updated 7 hours ago
Feb 25 2009 | 11:53am ET
The former heads of UBS’s failed hedge fund business are joining forces once again. John Costas and Michael Hutchins, long-time UBS executives who set up Dillon Read Capital Management three years ago, are to found a boutique firm with a broker-dealer arm and a proprietary trading desk, according to Bloomberg News.
The new firm is tentatively dubbed VinsonForbes. In addition to Costas and Hutchins, ex-Dillon Read trader Matthew Johnson is setting up the new firm.
Costas joined UBS in 2001 to run its investment bank, and moved its proprietary trading desk to Dillon read in 2005. The creation of Dillon Read—which would up costing UBS $3 billion—was widely seen as a bid to hold on to Costas, who had been considering leaving the firm to found his own hedge fund. UBS pulled the plug on Dillon Read two years ago, after the hedge fund was battered by the subprime mortgage market collapse.
Hutchins served as president and chief investment officer of Dillon Read, after leading UBS’ fixed-income unit, and last year started his own hedge fund firm, BlueHawk, with 15 other Dillon Read vets. It is unclear what the future holds for BlueHawk, if anything.