O'Connor duo start FHS arb fund

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Two traders from O'Connor have left the firm and are planning to launch their own multi-strategy fund called FHS. The duo, Michael Friedman and Michael Schmidt, will be based in Chicago and are expected to attract considerable interest from investors.

They both worked on the O'Connor multi-strategy fund that had a rocky spell last year and saw assets shrink from a peak of $3 billion to a little over $1 billion. Since then, performance has picked up and the firm has started to roll out a number of specialist strategies.

These include a U.S. fundamental equity strategy run by Kipp