Distressed Debt Trader Nate Morse Joins Aristeia Hedge Fund

  • Morse will focus on high-yield credit at $2.2 billion fund
  • Event-driven strategies fell in January before gaining in year

Credit trader Nate Morse has joined hedge fund Aristeia Capital after leaving Luxor Capital in January as event-driven strategies struggled earlier this year.

Morse, who started at Aristeia on Monday, will focus on trading high-yield credit for the $2.2 billion fixed-income relative value fund in Greenwich, Connecticut, according to Chief Operating Officer Andrew David. Morse had spent more than a year and a half as a credit trader at event-driven Luxor Capital before leaving six months ago, according to his LinkedIn profile.

The start of the year was tumultuous for event-driven funds as the flow of mergers and acquisitions declined. The funds fell 3.6 percent last year and dropped 3 percent in January before recovering and gaining 1 percent for the year, according to Hedge Fund Research Inc. Global M&A activity dropped 11 percent in the first quarter from a year earlier, according to data compiled by Bloomberg.

Luxor in January reduced its six-person fixed-income team to four people, according to a person familiar with the matter. Luxor managed $8.1 billion including leverage as of Dec. 31, according to regulatory filings. A spokesman for the firm declined to comment.

Morse was previously a managing director of special situations at Jefferies & Co., and prior to that was managing director of distressed credit trading at Citadel Securities, according to his LinkedIn profile. Before joining Citadel in 2009, Morse worked at units of Citigroup Inc. and Barclays Plc, according to Financial Industry Regulatory Authority records.

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