Ex-UBS Hedge Fund Chiefs Found Boutique

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.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.