June 27 (Bloomberg) -- Hutchin Hill Capital LP, the hedge fund founded by Neil Chriss, has exited trades betting against JPMorgan Chase & Co. trader Bruno Iksil in a credit-derivatives index, according to a person familiar with the matter.
Chriss, a former Goldman Sachs Group Inc. trader who later managed a portfolio at SAC Capital Management LLC, was among hedge-fund managers who took advantage of gaps between the price of the index and its constituents created by Iksil’s outsized bets that earned him the nickname London Whale.
JPMorgan is seeking to contain a trading loss in its chief investment office that stood at $2 billion when it was disclosed almost seven weeks ago. Bloomberg News first reported in April that Iksil had amassed positions in Series 9 of the Markit CDX North America Investment Grade Index that were so large he drove the cost of contracts on the index below the average cost of credit swaps on the 121 companies it’s tied to.
Chriss started Hutchin Hill in 2008 with $300 million from Renaissance Technologies Corp. founder James Simons.
Saba Capital Management LP, the hedge fund run by Boaz Weinstein, closed similar trades, a person familiar with that fund said yesterday.
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