- Prasad and Mehregani's fund to be called Silver Ridge
- Original plan to start fund in April was delayed by FCA
Anil Prasad, the former global head of foreign exchange and local markets at Citigroup Inc., and his business partner Farhang Mehregani will start operating their own hedge fund in January after clearing regulatory hurdles in the U.K.
Prasad and Mehregani, former colleagues at Citigroup, have set up Silver Ridge Asset Management U.K. Britain’s Financial Conduct Authority had delayed their plans to start the fund in April, with both the FCA and Mehregani declining to comment on the reason for the FCA’s decision at the time.
"We are going to launch Silver Ridge on Jan. 4," Mehregani said in a telephone interview. "We have all regulatory authorizations and registrations in place."
FCA records show Silver Ridge as an authorized company effective Dec. 4. The duo had raised more than $500 million for their macro hedge fund, three people with knowledge of the matter had told Bloomberg in January. The team that Silver Ridge had in place in April remains intact, and the company will have offices in both New York and London, Mehregani said.
The FCA was looking at Prasad’s responsibilities while he was at Citigroup, the Wall Street Journal reported in April. Regulators have been probing whether traders manipulated benchmark rates in the $5.3 trillion-a-day currency market. Prasad’s departure from Citigroup last year was unrelated to the investigation, a person with knowledge of the matter said at the time.
Macro hedge funds such as Silver Ridge bet on global economic trends. One of the largest such firms, London-based Brevan Howard Asset Management, said this month that it was counting on a Federal Reserve interest-rate increase to generate market turbulence that presents trading opportunities, which had been lacking as policy makers kept borrowing costs near zero.
Macro hedge funds have raised $3.8 billion this year and managed $162.5 billion at the end of October, according to industry tracker Eurekahedge. The Eurekahedge Macro Hedge Fund Index gained 2.6 percent through the end of November this year.