Alarco Quits $1 Billion Rubicon Fund After Founder Returns

Santiago Alarco stepped down from running Rubicon Fund Management LLP’s $1 billion global fund, joining his former co-manager who left the firm in January.

Alarco, 47, resigned March 29, said Paul Downes, a spokesman at public relations firm Merlin representing Rubicon. Paul Brewer, a former Salomon Smith Barney Inc. executive who founded London-based Rubicon in 1999, has replaced Alarco as chief investment officer.

Brewer, former co-head of foreign exchange at Salomon Smith Barney, returned full time last year after a leave of absence following a horse-riding accident in 2009. Alarco’s co-manager, Timothy Attias, quit at the start of the year.

The Rubicon Global Fund is a macro fund, which trades instruments such as currencies, interest rates, foreign exchange and bonds to take advantage of broad economic trends.

Alarco and Attias, 45, led the fund to a 14 percent gain last year, beating the average 3.6 percent increase for macro funds, according to data compiled by Bloomberg. Alarco couldn’t be reached for comment.

The Rubicon fund was down about 5 percent this year through March, according to investors. Clients have also withdrawn money, as the fund had about $1.6 billion in assets under management at the end of 2010.

Brewer started the hedge fund with four Salomon Smith Barney executives. Rubicon’s partners include Joseph Leitch, who led foreign exchange with Brewer at the Wall Street firm. The global fund has posted average annual returns of about 13 percent since 1999, according to clients.

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