Traxis' runaway success provides a boost to the new Morgan
T o many observers, Traxis did not look like the most
promising hedge fund launch of this year. It is run by three
partners, two of whom were perceived to have had mixed fortunes
with previous hedge fund ventures. One of the founders had even
openly hypothesized over whether the hedge fund industry was a
'bubble' in a research document titled "Looking into the Hedge
Fund Bubble", published in June 2001.
Furthermore, Traxis is run by a team who have been reputed,
rightly or wrongly, as having a quantitative valuation model
that has a tendency to be early on its investment themes, which
hardly seems appropriate in a business that is obsessed with
monthly numbers and is notoriously intolerant of downside
Yet, within three months of the launch, Barton Biggs, Madhav
Dhar and Cyril Moulle-Berteaux have gone a...