Key Takeaways
- • Morgan Stanley's asset management arm has anchored roughly $500m for Continuum Capital Management, a new quant fund in Dubai led by Nikolay Aleksandrov, formerly of ExodusPoint and Millennium, which will initially run capital exclusively for Morgan Stanley.
- • Sweden's Brummer & Partners has launched Brummer Fixed Income with approximately $500m of its own capital plus a further $600m from external investors, led by Nikolaus Hildebrand, formerly of Brevan Howard and ExodusPoint; trading began last month.
- • Schonfeld Strategic Advisors has committed a $500m anchor allocation to Insight Capital Management, an Abu Dhabi-based platform founded earlier this year by Omar Newera, which will initially run capital solely for Schonfeld.
- • At least five senior portfolio managers from leading global multi-strategy funds are launching new entities in the UAE, with the region favoured for operational flexibility, favourable tax structures and increasingly sophisticated regulation.
- • The wave of launches is notable because the largest mandates are coming from US and European institutions rather than local sovereign wealth funds, according to Bloomberg.
Summary
New hedge fund launches are accelerating across Dubai and Abu Dhabi as senior portfolio managers from global multi-strategy funds set up their own ventures, according to a report by Bloomberg. At least five portfolio managers from leading global hedge funds are in the process of launching new entities in the UAE, which has become a preferred base for traders seeking operational flexibility, favourable tax structures and increasingly sophisticated regulatory frameworks. Notably, despite the region's large pools of capital, several of the biggest launches are anchored by Western institutions, including Brummer & Partners, Schonfeld Strategic Advisors and Morgan Stanley, rather than by local sovereign wealth.
One of the largest mandates has gone to Nikolay Aleksandrov, formerly of ExodusPoint Capital Management and Millennium Management, who has secured roughly $500m from Morgan Stanley's asset management arm to launch Continuum Capital Management, a quantitative fund in Dubai. Aleksandrov is expected to run capital exclusively for Morgan Stanley under the arrangement.
Sweden's Brummer & Partners has hired Nikolaus Hildebrand, a former portfolio manager at Brevan Howard and ExodusPoint, to lead a new fixed-income strategy. The vehicle, Brummer Fixed Income, has launched with approximately $500m from Brummer and a further $600m raised from external investors, with trading beginning last month.
The wave also includes Abu Dhabi-based Insight Capital Management, founded earlier this year by Omar Newera, which has secured a $500m anchor commitment from Schonfeld Strategic Advisors. Insight will initially run capital solely for Schonfeld as it builds its platform.
One of the largest mandates has gone to Nikolay Aleksandrov, formerly of ExodusPoint Capital Management and Millennium Management, who has secured roughly $500m from Morgan Stanley's asset management arm to launch Continuum Capital Management, a quantitative fund in Dubai. Aleksandrov is expected to run capital exclusively for Morgan Stanley under the arrangement.
Sweden's Brummer & Partners has hired Nikolaus Hildebrand, a former portfolio manager at Brevan Howard and ExodusPoint, to lead a new fixed-income strategy. The vehicle, Brummer Fixed Income, has launched with approximately $500m from Brummer and a further $600m raised from external investors, with trading beginning last month.
The wave also includes Abu Dhabi-based Insight Capital Management, founded earlier this year by Omar Newera, which has secured a $500m anchor commitment from Schonfeld Strategic Advisors. Insight will initially run capital solely for Schonfeld as it builds its platform.
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