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May 6, 2014 7:11 pm
Pierre-Henri Flamand, the former Goldman Sachs proprietary trader whose high-profile hedge fund Edoma Partners closed down in November 2012 after two years, is to join Man Group, according to three people familiar with the situation.
Mr Flamand is joining GLG Partners, Man’s $30.1bn asset management division, as a senior portfolio manager in the summer, one of the people said. He is expected to build a team and launch a hedge fund, where he will run a global portfolio of “catalyst-driven investments across the capital structure”, the person added.
At Goldman, where he worked with Man chief executive Manny Roman, Mr Flamand was a partner and ran its main strategies division, the bank’s equities-focused trading desk. He left in March 2010 after 15 years at the US bank, which subsequently closed down the division to comply with the Volcker rule that prohibits banks trading for their own account.
Mr Flamand raised more than $2bn for the launch of Edoma in November 2010, making it the largest launch of that year. He ran a 20-strong team at the much-hyped start-up, where he was joined by several former Goldman colleagues, including founding partners Ali Hedayat and Emmanuel Niogret.
Edoma suffered from poor performance and investor redemptions, and its assets shrank from a peak of more than $2bn to $855m. Between its inception in November 2010 and the end of October 2012, the fund fell 7 per cent, compared with the Euro Stoxx 50 index, which lost 12 per cent over the same period.
In November 2012 Mr Flamand said he was shutting down the business and returning money to investors because he was “unable to make money in the current environment”. The fund followed a European event-driven strategy, which trades around corporate activity such as mergers, takeovers, restructurings and initial public offerings.
It struggled amid a dearth of corporate activity in Europe, where the sovereign debt crisis undermined corporate confidence in dealmaking.
The number of hedge fund launches in Europe has been at record lows for the past two years, according to trade magazine EuroHedge, because of an increased regulatory burden and a tough fundraising environment. Against this backdrop, companies such as Man, Millennium Management and BlueCrest Capital Management, that offer an institutional infrastructure, have been hiring portfolio managers.
Elsewhere within Man, there have been a number of recent moves within AHL, its flagship quantitative trading division. Last week it announced internally that Doug Greenig, chief risk officer of AHL, had transferred to GLG, with Darrel Yawitch moving in the other direction.
AHL’s head of trading, Murray Steel, has been promoted internally to become the Hong Kong-based chief operating officer of Man’s Asia business, while Matthias Hagmann, AHL’s head of equities, has left the company.
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