Key Takeaways
- • Three portfolio managers (Gugesh Guganeswaran, Kurt Lichtman, and Matthew Potts) and at least one analyst have departed Balyasny Asset Management following November market volatility, though the firm does not disclose specific reasons for the exits.
- • Balyasny posted its best monthly performance of 2024 with a 3.9% gain in November, driven in part by macro strategies that benefited from post-election market dislocations following Donald Trump's victory.
- • Global macro strategies significantly underperformed through October 2024, with the PivotalPath Global Macro Index up only 4.5% year-to-date compared to a 10.4% gain for the broader Composite Hedge Fund Index, creating performance pressure before November's rebound.
- • Matthew Potts, who joined Balyasny in 2020 from BlackRock where he led macro strategies, oversaw a semi-systematic emerging-markets exchange-rate team based in San Francisco; Guganeswaran was a senior PM with prior experience at Citadel and Barclays FX options trading.
- • The departures occur despite Balyasny's aggressive talent acquisition throughout 2024, signaling that even November's strong performance was insufficient to retain all portfolio managers amid earlier-year performance headwinds.
Summary
Balyasny Asset Management has experienced a handful of departures among its macro trading team following November's volatile markets, according to sources familiar with the matter. The exits include three portfolio managers—Gugesh Guganeswaran, Kurt Lichtman, and Matthew Potts—as well as at least one analyst. A company spokesman declined to comment on the personnel moves, and the specific reasons for departure remain unclear.
The timing of these departures is noteworthy given Balyasny's strong November performance. The $33 billion hedge fund posted a 3.9% gain last month, marking its best month of 2024, with macro performance contributing meaningfully to these returns. The month's gains were fueled by market dislocations following Donald Trump's election victory, which benefited macro-focused peers including Discovery Capital, Rokos, and Brevan Howard. However, this November rebound came after a deeply challenging period for global macro strategies through most of 2024, as measured by the PivotalPath Global Macro Index, which stood at only 4.5% year-to-date gains—significantly lagging the broader Composite Hedge Fund Index at 10.4%.
The departing traders brought substantial experience to Balyasny. Matthew Potts joined the firm in 2020 from BlackRock, where he served as head of macro strategies, and subsequently launched a semi-systematic team in San Francisco focused on emerging-markets exchange rates. Guganeswaran, a senior portfolio manager based in the United Kingdom, also joined in 2020 and previously held roles as a portfolio manager at Citadel and an FX options trader at Barclays. Despite these strong credentials and the firm's November success, the traders have chosen to exit.
These departures stand in contrast to Balyasny's broader 2024 talent strategy. The firm has been an aggressive acquirer of investment talent throughout the year, suggesting that even elevated November performance has not been sufficient to retain all portfolio managers, particularly those who may have experienced extended underperformance during the challenging first ten months of the year for global macro strategies.
The timing of these departures is noteworthy given Balyasny's strong November performance. The $33 billion hedge fund posted a 3.9% gain last month, marking its best month of 2024, with macro performance contributing meaningfully to these returns. The month's gains were fueled by market dislocations following Donald Trump's election victory, which benefited macro-focused peers including Discovery Capital, Rokos, and Brevan Howard. However, this November rebound came after a deeply challenging period for global macro strategies through most of 2024, as measured by the PivotalPath Global Macro Index, which stood at only 4.5% year-to-date gains—significantly lagging the broader Composite Hedge Fund Index at 10.4%.
The departing traders brought substantial experience to Balyasny. Matthew Potts joined the firm in 2020 from BlackRock, where he served as head of macro strategies, and subsequently launched a semi-systematic team in San Francisco focused on emerging-markets exchange rates. Guganeswaran, a senior portfolio manager based in the United Kingdom, also joined in 2020 and previously held roles as a portfolio manager at Citadel and an FX options trader at Barclays. Despite these strong credentials and the firm's November success, the traders have chosen to exit.
These departures stand in contrast to Balyasny's broader 2024 talent strategy. The firm has been an aggressive acquirer of investment talent throughout the year, suggesting that even elevated November performance has not been sufficient to retain all portfolio managers, particularly those who may have experienced extended underperformance during the challenging first ten months of the year for global macro strategies.
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