Two New Hedge Funds: James Pallotta (Raptor Capital), Christopher Pia (Pia Capital)

by: Market Folly

James Pallotta, formerly of Tudor Investment Corp, and Christopher Pia, formerly of Moore Capital Management have finally set out to launch their own funds. The market for raising capital has tempered their ambitious launches a bit, and although they are both still launching, it is undoubtedly with less capital than they had probably anticipated.

While at Tudor, Pallotta was in charge of the Raptor fund where he placed global macro style bets on equities. We covered the announcement that he was starting his own fund, and here we are again, as he launches his new fund: Raptor Capital Management. He was the one running the equities we tracked at Tudor and since 1993; he saw 14% annual returns. The recent turmoil marks the longest losing record of Pallotta's career.

Pia, on the other hand, will not be trading equities, but rather currencies, commodities, bonds, and stock indexes in the true global macro style. Pia Capital Management will seek to hold 20-40 positions between three weeks to three months. Since he won't be doing equities, we, unfortunately, won’t be tracing him. Pia also has an outstanding track record, and while at Moore Capital, he locked in 17% annual returns and never had a down year.

Next, turning to Citadel, we see that Misha Malyshev has left with two members of his team. Malyshev was in charge of the high frequency trading unit at Citadel, and while Citadel's main funds floundered last year, Malyshev was up around 40%. Due to restrictions in his contract, it’s unlikely Malyshev will start a new fund in the next 18 months or so.