Two Sigma’s Beverage Backs Hedge Fund Startup Led by Analysts

  • Taproot to start trading with about $500 million next year
  • Founder David Lin is building fund led by multi-analyst team
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A new hedge fund is shunning pricey portfolio managers by recruiting only analysts to run money and replicate returns generated by some of its largest peers but at a lower cost.

Taproot Management has won backing from Jason Beverage, former chief investment officer of Two Sigma Advisers, to do so, according to a person with knowledge of the matter. Taproot’s founder, David Lin, who previously worked as an analyst at Millennium Management-backed Tamridge Capital and Larry RobbinsGlenview Capital, expects to start the fund with about $500 million next year, the person said, asking not to be identified because the information is private.