Ex-Soc Gen trader to start new fund

Maxime Kahn, the former Societe Generale official who helped unravel the wreckage left by convicted rogue trader Jerome Kerviel, is preparing to start his own hedge fund to bet on rising and falling share prices.

Bloomberg News reports that the fund will start with as much as $422m in the third quarter of next year and use both quantitative techniques and fundamental analysis to pick stocks globally, Kahn, 45, said in an interview. The initial capital is coming from one investor that he declined to identify.

The move comes amid a shrinking hedge-fund industry in Europe, where startups are becoming rarer because of mounting costs and poor performance. About 557 hedge funds have closed in the region from the start of 2015 through September this year, while only 476 have started, according to Eurekahedge data.

"It’s going to be a big challenge,” said Kahn, who is building a 10-member team to start the fund. “But the people I’m gathering from a lot of different horizons have the skills to face this."

To access the complete Bloomberg News article hit the link below:

SocGen Trader Kahn Who Unwound Kerviel Bets Plans Hedge Fund

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