PointState Capital, the hedge-fund firm that made $1 billion last year betting oil prices would fall, has hired credit trader Scott Balkan from Silver Point Capital, according to a person with knowledge of the move.
Balkan, who previously ran distressed debt at Citigroup Inc., departed Silver Point this week, said the person, who asked not to be identified because the move hasn’t been publicly announced.
PointState was founded in 2011 by former employees of Stan Druckenmiller’s Duquesne Capital Management, with $1 billion from Druckenmiller and $4 billion from other investors. It was one of the biggest winners from last year’s drop in oil prices, which helped PointState make about 27 percent for the year after fees.
Balkan headed investment-grade trading and distressed debt units at Citigroup before departing the New York bank in 2014 for hedge-fund firm Silver Point. He was among dozens of debt traders who departed Wall Street for jobs at asset managers as new rules crimped big banks’ appetite for risk taking.
Todd Fogarty, a spokesman for Silver Point; Patrick Clifford, who represents PointState; and Balkan all declined to comment.