Pine River Capital Is Said to End Long-Short Equity Trading

Updated on
  • Stocks money manager Bradley Ruhoff is leaving Pine River
  • Hedge fund shifts focus toward event-driven strategy

Pine River Capital Management is ending long-short equity trading and shifting stock bets in its main fund to mergers, spinoffs and management changes, according to people with knowledge of the matter.

Bradley Ruhoff, an equities money manager, is leaving the firm as a result of the changes, said one of the people, who asked not to be identified because Pine River is private. Joe Bishop, who ran the equities strategy that had less than $50 million in Pine River’s main multi-strategy fund, is now focusing on the firm’s liquid mutual fund business, the person said.

Pine River, where assets have plunged to $9 billion from $15 billion in 2015, is revamping its business as investors sour on stock pickers and put money in cheaper index funds and exchange-traded funds. The firm has told clients that it’s focusing on event-driven investing, municipal bonds and volatility trading, the person said. Most of the $1.5 billion in managed accounts are invested in those strategies.

Money manager Renos Dimitriou is set to spin off his $1.7 billion government bond-trading fund into a standalone firm next year. Pine River is liquidating its China hedge fund following losses and also closed its fixed-income fund after Steve Kuhn, one of its co-managers, announced last year he was stepping away from managing money. Brian Zied, who ran the equities business with Bishop, left last year to join Impala Asset Management.

Read more: Former Pine River Partner Kuhn Fighting Fund Over Exit Payout

Pine River’s event-driven strategy, which was started two years ago and is overseen by Neel Gupta and Paul Godfrey, manages about $800 million. That money is managed in Pine River’s main fund as well as separate pools of capital for clients, the person said.

The firm’s $1 billion multi-strategy Pine River Fund hasn’t made money this year, the person said. That compares with a 3.4 percent gain by the average multi-strategy fund, data compiled by Bloomberg show.

Shawn Pattison, a spokesman for Minnetonka, Minnesota-based Pine River, declined to comment, while Ruhoff didn’t immediately return an email and telephone message seeking comment.

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