Hutchin Hill Hires Barclays’ Credit Index Options Trader Sateesh

Hutchin Hill Capital LP, the $1.4 billion hedge-fund firm founded by Neil Chriss, hired Santosh Sateesh from Barclays Plc to trade options tied to credit derivative indexes.

Sateesh will start next month at New York-based Hutchin Hill, reporting to Hang-Bae Lee, according to two people with knowledge of the situation who asked not to be identified because the hire hasn’t been announced. Sateesh joined Lehman Brothers Holdings Inc. in 2007 and moved to Barclays in September 2008, according to Financial Industry Regulatory Authority records.

Nathaniel Garnick, a spokesman for Hutchin Hill at Sard Verbinnen & Co., and Brandon Ashcraft, a spokesman for London-based Barclays, declined to comment.

Hutchin Hill has gained 3.8 percent this year through Feb. 21, according to a person briefed on its returns, after 19 percent last year. Chriss, a former Goldman Sachs Group Inc. trader who later managed a portfolio at SAC Capital Advisors LP, started the fund with $300 million from Renaissance Technologies Corp. founder James Simons.

The options contracts, which give investors the right but not the obligation to buy or sell indexes of credit-default swaps at a specified price, are used to guard against or speculate on fluctuations in prices or bet on changes in volatility.

Traders using options can construct strategies that require no upfront payment while tracking movements in underlying indexes. By buying and selling contracts on credit-derivative benchmarks, an investor can get protection against a jump in debt risk at little or no cost.

To contact the reporter on this story: Mary Childs in New York at mchilds5@bloomberg.net

To contact the editor responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net

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