Ex-Goldman Sachs Group Inc. proprietary traders Bennett Grau and Mark Mallon are teaming up with former colleague Marc Mezvinsky to start a hedge fund, according to a person with knowledge of their plans.
The three are raising money for their new firm, Eaglevale Partners LP, which plans to start trading in the first half of 2012, said the person, who asked not to be identified because the information is private. The fund will employ a global macro strategy, seeking to profit from economic trends by trading securities from bonds to commodities.
Mezvinsky, 33, who last year married Chelsea Clinton, 31, used to work with Grau and Mallon at Goldman Sachs’s global macro proprietary-trading group before he left in 2008 for investment firm 3G Capital Inc. The three join Morgan Sze and Pierre-Henri Flamand, former heads of Goldman Sachs’s global principal strategies proprietary group, who each started their own hedge funds in Hong Kong and London in the past year.
“Those from high-profile prop desks seem to have an edge over their competition in attracting assets,” said Don Steinbrugge, managing partner of Agecroft Partners LLC, a Richmond, Virginia-based firm that advises hedge funds and investors.
Jonathan Gasthalter, a spokesman for Eaglevale based in New York, declined to comment.
Mezvinsky left 3G Capital last year, according to Eaglevale’s marketing documents. Grau, 62, and Mallon, 45, left Goldman Sachs earlier this year as the New York-based firm shuttered its proprietary-trading business to comply with U.S. regulations that restrict banks from risking their money on speculative bets.
Grau in 1973 joined commodities-trading firm J. Aron & Co., which was bought by Goldman Sachs in the early 1980s. He was a portfolio manager for Goldman Sachs’s global macro proprietary-trading group since he started it in 1988, according to the marketing documents.
Mallon joined Goldman in 2004 after working for more than a decade at New York-based hedge fund Caxton Associates LP. He started his trading career at Commodities Corp., the documents said.
The trio will be joined by Michael Fox, 31, who left New York-based hedge fund Woodbine Capital Advisors LP this year, and will oversee Eaglevale’s business development, according to the documents.