Looking back on a high level Morgan Stanley departure and D.E. Shaw's arbitrage offerings

By Rob Copeland

Tue Dec 4, 2012


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Absolute Return also revisits an expansion for volatility firm Titan Capital Group.


One year ago
>> Michael McGrath departed Morgan Stanley Smith Barneys $45 billion alternative investments unit, where he oversaw hedge fund selection for high net worth clients.

Six months later, McGrath landed at Perella Weinberg Partners as a partner in the asset management business. He now markets Perellas offerings to wealthy clients and is focused on crafting effective relationships, as a press release put it. A spokeswoman for the firm was not immediately available to offer further details on his appointment.

Performance information for Perellas hedge funds is available in the HedgeFund Intelligence database.

See also: Ex-Deutsche Bank prop team leads new Perella Weinberg equity fund

>>  Titan Capital Group expanded its team amid broad gains for its relative value volatility strategies in a tough year for some of its peers. That performance was a turnaround from an unpleasant prior year during which the firm's global fund dropped more than 40% (see complete data here).

This year, Titans Global Return Fund is up 3.39% through the end of October, compared with a 3.21% gain for the Absolute Return Mixed Arbitrage Index.

A representative for Titan said that in addition to the recent performance, the fund has added J.P. Morgan as a new prime broker over the past year.

Five years ago
>>  D.E. Shaw & Co. ceased to offer its flagship statistical arbitrage strategy, Valence, instead rolling its $400-500 million in assets into the Composite multistrategy fund. That decision seemed to come at exactly the right time, as convertible and equity arbitrage funds were slaughtered in 2008, when the relevant Absolute Return benchmark was down 24.56%.

Recent returns for the Composite fund were not immediately available, but D.E. Shaws $9.5 billion Oculus fund, a multistrategy which is the firms largest fund, was up 13.4% in 2012 through the end of September, compared with a 6.06% rise for the Absolute Return Multistrategy Index during the same period.

A D.E. Shaw spokesman did not immediately respond to a request for comment.

See also: Former D.E. Shaw, Woodbine portfolio managers mull new fund - D.E. Shaw among Billion Dollar Club winners
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ISSN: 2151-1845 / CDC10004H