Deutsche Bank’s former head of their foreign exchange Trading division, Ahmet Arinc, is joining rivals ExodusPoint Capital Management. Arinc joins along with his team after closing the hedge fund he started four years ago after leaving Deutsche Bank.
Arinc, after quitting the German Bank, founded Cirera Capital with Tijen Gumusdis, his ex-colleague. According to Bloomberg news, which saw the investor document, he is liquidating the hedge fund that focused on the emerging market. Arinc and Tijen managed a $500 asset which grew from the initial $17 million fund they started with.
Declining Fees
After analyzing their investment company’s increasing cost of operations, the duo decided to close their fund. This run trend is seen across others, too, with many rival hedge funds run by individual managers either merging with bigger funds or shutting down.
They informed their investors in a letter issued in August they ta spent several months evaluating how to manage rising costs and other requirements to operate a fund of their size. The declining fee structure and other challenges made it expensive and difficult for them to continue further.
Arinc and Gumusdis had additional fund commitment, which would have taken their asset under management close to $1 billion, according to confidential information from a certain source. However, both decided to close the fund and continue under a new umbrella.
The new company ExodusPoint will have a team of traders who will combine their efforts to manage a hedge fund of the size of $13.4 billion.
Arinc and a spokesman for ExodusPoint declined to comment after the firm had posted a 5% return in August.
Gurmusdis, the former flow trading head for Eastern and Central Europe, Africa, and the Middle East, along with Arinc, gave their investors a 43.7 % return since launch from their Cierra Capital hedge fund. This year they have given so far 9.2%, according to the letter given to investors last month.
Diversified Asset Risk
ExodusPoint represents multistrategy investments, and they have aggressively hired hedge fund talent from the market. Investors are shifting from single strategy hedge funds and investing in multistrategy investments.
Recently Heron Bay capital shut down, and its team led by Sean Gambino joined rival Eisler capital. Similarly, Industry veterans Mitesh Parekh and Colin Lancaster have joined Schonfield.
