Two former Goldman Sachs Group Inc. senior traders are starting a hedge fund with at least $50 million in initial capital from Investcorp, a firm that seeds alternative-investment firms.
Rishi Chadda and Cyrus Pouraghabagher will start New York-based Kingsguard Advisors LP on Nov. 1, which will employ a global macro fixed-income strategy, according to an Investcorp statement that was obtained by Bloomberg News. In addition to the allocation, Investcorp will also provide Kingsguard with risk, marketing and operational services, according to the statement.
Kingsguard is the first global macro fixed-income strategy among the funds to which Investcorp has given initial capital, Deepak Gurnani, the firm’s head of hedge funds and chief investment officer, said in a telephone interview. Investcorp has investments in six hedge funds, collectively holding $1.8 billion, through its seeding program. Kingsguard will try to profit from bets on interest rates, volatility, credit markets and mortgages.
Changes to global regulations and moves by central banks worldwide are among factors that are contributing to price swings and market volatility, Chadda said in a telephone interview.
“These changes create exciting investment opportunities,” he said.
Investcorp, based in Bahrain, has $11.5 billion in assets. Its three businesses include corporate investment in the U.S., Europe and the Gulf Cooperation Council; real estate investment in the U.S.; and global hedge funds. It is publicly traded on the Bahrain Bourse, runs its hedge fund operations out of New York and also has a London office.
Chadda and Pouraghabagher, both 37, who started their careers as analysts in the mortgage department of Goldman Sachs in the summer of 1997, rose to senior trading roles at the firm. Chadda became a managing director and worked in Goldman Sachs’s interest-rate products group, and Pouraghabagher became a vice president on the firm’s mortgages desk, which included derivatives and residential mortgage securities that lack government backing.