Key Takeaways
- • Alessandro Cipollini, a macro hedge fund manager and Cambridge/Bocconi graduate, has rejoined Markham Rae in London as a senior discretionary portfolio manager after spending two years at Argentière Capital in Zug, Switzerland.
- • Markham Rae, a fixed income hedge fund founded in 2010 as a BNP Paribas prop trading spin-out, has maintained remarkable headcount stability with only two hires since January 2014; the firm's 11 partners more than doubled gross profits to £11.6 million in the year to March 2016.
- • Cipollini's role focuses on macro and relative G10 rates trading and volatility—active areas in current markets—and represents a return to his prior employment at Markham Rae between 2011 and 2013, before his interim stint at Capstone Investment Advisors.
- • The move signals potential talent attrition from Zug-based hedge funds despite Deepak Gulati's success in recruiting London traders to Argentière Capital, the $500 million hedge fund he established in 2013 after leaving J.P. Morgan's global head of prop trading role.
Summary
Alessandro Cipollini has returned to London to rejoin Markham Rae as a senior discretionary portfolio manager, marking a departure from Argentière Capital in Zug, Switzerland, where he spent approximately two years. Cipollini, educated at Cambridge and Bocconi, brings a career focused entirely on rates trading within macro strategies. His move back to the City represents a return to familiar ground, having previously worked at Markham Rae between 2011 and 2013 before moving to Capstone Investment Advisors.
Markham Rae, the fixed income hedge fund established in 2010 as a spin-out from BNP Paribas' macro-focused proprietary trading operation, demonstrates an unusual staffing profile compared to industry peers. According to FCA Register data, the firm has hired only two people since January 2014, with most staff having remained continuously employed since the fund's 2010 launch. This staffing stability correlates with strong financial performance: the firm's 11 partners more than doubled gross profits to £11.6 million in the year to March 2016, according to Companies House filings. Cipollini's appointment as one of only two hires in over three years underscores the fund's selective hiring approach.
Cipollini's prior employer, Argentière Capital, was founded in 2013 by Deepak Gulati, J.P. Morgan's former global head of proprietary trading. The Zug-based fund, capitalized at $500 million, has actively recruited London-based traders despite the Swiss town's limited appeal to financial professionals. The loss of Cipollini to London suggests that despite Gulati's initial success in attracting talent to Switzerland, the draw of London's established financial ecosystem and professional community may present ongoing recruitment challenges for funds based outside major financial centers.
Cipollini's new mandate focuses on macro and relative G10 rates trading with emphasis on volatility strategies—domains described as currently active. His specialized skill set in rates markets and his experience at both Markham Rae and Capstone position him to contribute immediately to the fund's fixed income and macro strategies.
Markham Rae, the fixed income hedge fund established in 2010 as a spin-out from BNP Paribas' macro-focused proprietary trading operation, demonstrates an unusual staffing profile compared to industry peers. According to FCA Register data, the firm has hired only two people since January 2014, with most staff having remained continuously employed since the fund's 2010 launch. This staffing stability correlates with strong financial performance: the firm's 11 partners more than doubled gross profits to £11.6 million in the year to March 2016, according to Companies House filings. Cipollini's appointment as one of only two hires in over three years underscores the fund's selective hiring approach.
Cipollini's prior employer, Argentière Capital, was founded in 2013 by Deepak Gulati, J.P. Morgan's former global head of proprietary trading. The Zug-based fund, capitalized at $500 million, has actively recruited London-based traders despite the Swiss town's limited appeal to financial professionals. The loss of Cipollini to London suggests that despite Gulati's initial success in attracting talent to Switzerland, the draw of London's established financial ecosystem and professional community may present ongoing recruitment challenges for funds based outside major financial centers.
Cipollini's new mandate focuses on macro and relative G10 rates trading with emphasis on volatility strategies—domains described as currently active. His specialized skill set in rates markets and his experience at both Markham Rae and Capstone position him to contribute immediately to the fund's fixed income and macro strategies.
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