Moore Said to Reduce Positions Amid Equity Restructuring
Moore Capital Management LLC, the $15 billion hedge fund run by Louis Moore Bacon, cut 10 to 15 investment jobs as it restructures one of its equity teams, according to three people with knowledge of the matter.
The portfolio managers and research analysts were let go on Sept. 11, said one of the people, who asked not to be identified because the information is private. Patrick Clifford, a spokesman for New York-based Moore, declined to comment.
“Apart from a few hedge funds, it’s not that typical to see a large reduction in headcount in the industry,” said Ronen Schwartzman, founder of Ten Capital Advisors LLC, a New York- based firm that advises clients on investing in hedge funds. “Performance must be having an impact.”
Bacon, 56, hired his older brother, Zack Hampton Bacon III, in February to oversee strategic planning, a person briefed on the matter said that month. Bacon told clients last month that he planned to return $2 billion, or about 25 percent of his main fund, to investors, saying it may be too big for him to generate returns in line with historic profits as “liquidity and opportunities have become more constrained.”
Moore, which Bacon founded in 1989, had 208 employees involved in investment-advisory roles, including research, according to a regulatory filing in March. The firm had 426 workers, excluding clerical staff.
Equity trading at Moore is overseen by Matt Carpenter, who joined the firm in 2010. He previously ran a unit at Citigroup Inc. that traded U.S. stocks with more than $1 billion of the New York-based bank’s own money.
Bacon, whose main fund has averaged gains of more than 18 percent annually, told clients performance in this year’s first half was “disappointing” when he announced plans to give back capital.
The Moore Global Investments Ltd. fund returned about 0.8 percent this year through August, according to investors. The fund follows a macro strategy that seeks to profit from broad economic trends by trading everything from bonds to currencies. Such funds lost an average of 0.6 percent, while the hedge-fund industry gained 2.6 percent, according to data compiled by Bloomberg.
The Standard & Poor’s 500 Index climbed 12 percent during the first eight months of 2012 while the Stoxx Europe 600 rose 9 percent.
Moore isn’t the only hedge fund making changes to its teams. Citadel LLC, the Chicago-based firm run by Ken Griffin, this month merged its quantitative credit and convertible-bond teams. The new Global Credit group is run by Ryan Garino, David Grossman and Jamey Thompson, according to the firm’s website.
Moore has added to its roster of portfolio managers this year. In May, the firm hired former Morgan Stanley executive Patrick Lynch as a credit portfolio manager. Last month it added Stephen Hull, a currency specialist who had worked at Brevan Howard Asset Management LLP.
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