Hedge Funds

Microsoft Treasury team spins out for hedge fund


Eight key members of a team that formerly ran Microsoft's $56 billion investment portfolio are preparing to launch a global multistrategy fund this month.

Seattle-based Tahoma Capital is expected to get started with a $200 million capital commitment from anchor investor Avalon Portfolio, which also holds a 15% stake in the new firm.

Tahoma, which is headed by CEO Jeff Scott, the former assistant treasurer at Bill Gate's computer conglomerate, will use an investment strategy similar to the Microsoft portfolio, employing both long/short and relative value strategies within the fixed-income, equities, currencies, municipal bond, interest rate, credit derivatives and