Deutsche Bank Ex-Currency Chief Arinc Is Said to Plan Hedge FundBy and
Ahmet Arinc, the former head of foreign exchange and emerging-market debt trading at Deutsche Bank AG, is preparing to start his own hedge fund with at least $100 million in initial capital, according to two people with knowledge of the matter.
Arinc is setting up Cirera Capital Ltd. in London, which is expected to start betting on macroeconomic trends across emerging markets in the first quarter of next year, the people said, asking not to be identified because the information is private.
Macro hedge funds are seeing an investor resurgence as the prospect of further rate increases from the Federal Reserve creates opportunities to make money. Ray Dalio, who leads the world largest hedge-fund firm, Bridgewater Associates, said on Thursday that the global economy is heading toward a new stage where markets won’t get the same level of support from monetary policy makers.
Despite their lackluster performance, macro funds raised $13.8 billion in the first five months of the year, the most by any strategy, according to eVestment. They climbed just 1.2 percent on an asset-weighted basis in the period, the least among the main strategies tracked by Hedge Fund Research Inc.
Arinc was one of the most senior executives at Deutsche Bank’s sprawling fixed-income unit, leading teams of traders dealing in emerging-market bonds and products tied to foreign exchange. The world’s biggest banks generated about $21 billion of combined revenue from the two industries last year, according to data from Coalition Development Ltd.
Deutsche Bank, which has been shrinking some fixed-income businesses, selling assets and scaling back in countries it deems risky, announced Arinc’s departure in a memo to staff about a year ago. The lender has spent billions of dollars settling legal probes and bolstering internal controls amid tougher regulatory scrutiny.
Tijen Gumusdis, Deutsche Bank’s head of flow trading for central and eastern Europe, the Middle East and Africa, said she has left the lender and will join Arinc’s fund. Alison Moody, a spokeswoman for Deutsche Bank in London, declined to comment on her departure.