'It’s been eating away at me. You’re constantly feeling the pressure to perform on a monthly basis'.
Bloomberg News reports that Srinivas Dhulipala helped Bank of America wager its own money on credit through the global financial crisis. Before that, he handled complex trades at Morgan Stanley, focusing on risky Latin American debt.
But the pain of running a modern credit hedge fund is enough to lead him to close up his shop, Kildonan Castle Asset Management, and pay out its capital to clients.
“To do this day after day was just not fun anymore,” Dhulipala said in an interview. “It’s been eating away at me. You’re constantly feeling the pressure to perform on a monthly basis.”
His firm, which managed $550 million at its peak, still holds about $300 million after a couple of years of tepid returns. It plans to finish payouts at the end of the quarter, Dhulipala said. Altogether, Kildonan averaged annual returns of roughly 5 percent since its inception in 2011, he said.
In the meantime, Bloomberg also reports that Bank of America’s head of investment banking, Diego De Giorgi, will leave the company at the end of February, according to a memo.
Jack MacDonald in Palo Alto, California, and Thomas Sheehan in New York were named co-heads of investment banking, according to the email sent by Matthew Koder, the bank’s new corporate and investment-banking chief. A spokesman for the lender confirmed the contents of the memo.
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