Michael Gelband spent much of his career playing second fiddle to Wall Street chieftains. Now he’s stepping to the fore with the biggest hedge fund startup ever – ExodusPoint.
Bloomberg News reports that his firm is expected to start next month with $8 billion, according to people with knowledge of the matter. In the uneasy atmosphere of hedge funds, it’s a staggering amount. Not to mention that Gelband’s investors are paying through the nose to park money with him as other hedge funds cut fees, see assets shrink or shut altogether.
“They’re going to have to show their A-game right from day one,” said Ronan Cosgrave, a managing director at Pacific Alternative Asset Management Co., which invests in hedge funds. “They don’t have the luxury of building a track record quietly behind the scenes.”
From New York to London, Gelband has been the subject of chatter on trading desks at banks, each vying for a slice of lucrative business from his hedge fund’s 30 or so teams that start wagering in fixed-income and stock markets on June 1.
Hit the link below to access the complete Bloomberg News article: