Daniel Martin, a former investment manager with Pelham Capital, is starting a hedge fund in London named Rye Bay Capital, a person with knowledge of the situation said.
The new fund will make long and short bets on share prices in multiple industries and is planning to start trading in the fourth quarter, said the person, who asked not to be named as the plan is private. Martin declined to comment.
Martin, 51, registered Rye Bay Capital LLP as a company in London last month. The firm has applied to the Financial Conduct Authority for approval, according to the person. Martin plans to recruit seven employees and hasn’t set a fundraising target, though talks with investors are under way, the person said.
Hedge fund startups fell to their lowest level in four years in 2014, dropping to 1,040 globally amid difficult fundraising conditions, according to Chicago-based data provider Hedge Fund Research. New London funds planned for this year include Rokos Capital Management, led by Brevan Howard Asset Management co-founder Chris Rokos, and EDL Capital, headed by Edouard de Langlade, formerly of Moore Management.
Pelham, a London-based long-short equity firm, was founded in 2007 by Ross Turner, formerly of Lansdowne Partners.
Martin worked at Pelham for seven years until September, according to the FCA’s register of individuals approved to work in finance. He earlier worked at Citigroup Inc., where he co-led the European utilities research team, according to his profile on the LinkedIn website.