Ex-Citi Emerging Markets Research Head Plans Hedge Fund

Citigroup Inc.’s former global head of emerging markets equity research, Rhys Summerton, plans to start his own hedge fund in September with at least $20 million of assets.

Milkwood Capital Ltd. will be a global equity long and short fund, taking bets on rising and falling stocks, according to a letter to potential investors obtained by Bloomberg News.

Summerton, 36, is putting $20 million of his own money in the pool, while other investors have given “indications of interest” to invest $50 million or more, he said by e-mail.

The opening comes as hedge fund startups in Europe are at a record low, according to a study by Bank of America Corp. About 34 new hedge funds started in the region in the first half of this year, down from 37 in the year-earlier period, according to the report.

Summerton worked for more than a decade at Citigroup in London and was head of research for central and eastern Europe, the Middle East and Africa before becoming global head of the emerging market equity research team in 2010. He left in May.

Morgan Stanley is prime broker to Milkwood Capital, which will be based in Ascot, England.

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