Hedge Funds

Fidelity spins off hedge fund unit

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Fidelity Investments quietly spun off its hedge fund unit Geode Capital Management as a separate company earlier this month. Although Geode has operated independently from Fidelity since its inception in 2001, it will now open up to outside investors for the first time. Jacques Perold, president of Geode and a Fidelity veteran who has been with the group for over 16 years, will leave Fidelity to run Geode full time. He previously managed Fidelity's suite of index funds.

Fidelity declined to specify Geode's returns but the funds generated income before tax of $7.98 million last year.