Ex-BlueBay Money Managers Said to Raise $2 Billion in Hedge Fund

  • Neil Phillips, Jonathan Fayman started trading in October
  • Amount raised is among the largest in Europe this year

Glen Point Capital, an investment firm started by former BlueBay Asset Management money managers Neil Phillips and Jonathan Fayman, raised almost $2 billion in one of the largest hedge-fund startups in Europe this year, according to two people with knowledge of the matter.

The London-based firm started trading last year and will stop taking money from June 1, the people said, asking not to be identified because the information is private. Hedge funds often reject cash from investors after a surge in assets under management, on concern that overseeing too much money could harm returns. The fund has returned about 9 percent since its start in October, the people said.

Glen Point, which bets on macroeconomic trends with a focus on emerging markets, joins a small number of hedge funds, including Rokos Capital Management and Key Square Group, that have been attracting new money as many peers are suffering outflows. Hedge fund manager Dan Loeb said in April that the industry is in the first stage of a “washout” after losses at the start of the year, and Blackstone Group LP President Tony James predicted last week that hedge funds may lose 25 percent of assets.

Phillips joined BlueBay, owned by Royal Bank of Canada, in 2005 as a money manager. In 2007, he started managing a macro strategy within the firm’s multi-strategy fund, moving on to manage the firm’s standalone macro hedge fund in 2009. BlueBay closed the $1.4 billion macro fund after Phillips and Fayman left in November 2014.

A spokesman for Glen Point declined to comment.

Chris Rokos, the Brevan Howard Asset Management co-founder who started his own investment firm last year, also decided to stop accepting new money at the start of February after raising $3.5 billion, a person with knowledge of the matter said in January. Scott Bessent, who earlier oversaw George Soros’s fortune and started Key Square Group, capped initial assets at $4.5 billion, people said earlier this year.

The wider hedge-fund industry, however, is under pressure because of poor performances and investor withdrawals. The HFRI Fund Weighted Composite Index declined 0.6 percent in the first quarter, its worst start to a year since 2008.

Investors pulled a net $15 billion from hedge funds globally last quarter, the most since the tail-end of the financial crisis, Chicago-based Hedge Fund Research Inc. said in April. Macro hedge funds suffered a net $7.3 billion in outflows between January and March. 

Glen Point has hired 21 people, including eight in its investment team, one of the people said.

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