Sutesh Sharma, previously the head of proprietary trading at Citigroup, is launching the widely anticipated Portman Square Capital this coming Autumn. With $500 million behind the London-based venture it is one largest start-ups in 2012.
Portman Square bears the name of its Marylebone location and will house trader teams specifically hired for their specialism in event-driven equity trading, convertible bond arbitrage, and volatility trading.
Eleven of the world’s most prominent hedge fund firms – including Alan Howard’s Brevan Howard, Kenneth Griffin’s Citadel and Louis Bacon’s Moore Capital – are behind the launch of Portman Square. Old Lane portfolio managers Lalit Das and Yusuf Khan will both join as partners.
In 2005 Mr Sharma, along with Vikram Pandit, launched Old Lane, one of the biggest hedge funds ever. It was later acquired by Citi in 2008. Although traders from Citi will be joining Portman Square later on in the year, the bank is not investing in this particular venture.
Mr Sharma’s resumé reveals an impressive $2 billion portfolio, averaging a $280 million annual return. However, the initial launch size and approach for Portman Square is being carefully managed to ensure its success.
Following in the footsteps of Mr Sharma, other traders including Mike Stewart from JP Morgan are also transforming in-house projects into stand alone funds. Azentus Capital launched in 2011 raising over $1 billion, making it the biggest hedge fund launch since the worldwide financial crisis began.
washingtonjournalcrest.wordpress.com 