Drifting Hedge Fund Star Could Do With a New Co-Pilot
Michael Hintze should find a way to focus on trading again. After all, CQS once boasted returns that were triple the hedge fund industry average.
It wasn’t supposed to be like this.
Photographer: Kyle Grillot/BloombergWhen the mojo starts to fade at a previously successful hedge fund, founders will often ask a colleague to run the overall business in order to concentrate on the trading opportunities that built the riches in the first place. But what if that road to redemption is compromised by a previous failed attempt to cede control?
Billionaire Michael Hintze’s hedge fund is down by 42.5% this year after losing a third of its value during the Covid-driven market turmoil in March, my Bloomberg News colleague Nishant Kumar reported earlier this month. Investments in structured credit, Hintze’s specialty, were hammered amid concern the pandemic would trash the economy and spark a wave of debt defaults.