Morgan Sze, global head of Goldman Sachs principal strategies prop trading desk, is about to launch a global hedge based in Hong Kong, Bloomberg reported.Azentus Capital Management will be 75% invested in Asia and is scheduled to start trading at the end of March.
Sze’s team of 12 will depart from the bank before the fund begins trading.
Goldman announced that Principal Strategies was disbanding over Summer, in response to Dodd-Frank, and though there were whispers of Sze’s team spinning out, there was no consensus on where the team would go and there was a possibility the team would be dispersed internally.
[The fund] has attracted investment interest from Goldman Sachs partners. [But] the most profitable firm on Wall Street will not back it with money from its balance sheet.
Azentus is expected to start investment with $1 billion to $1.5 billion, making it the largest hedge fund startup since the financial crisis began.
Insiders told Bloomberg that Sze started marketing in last month and met up with large investors even before that. They didn’t rule out possible investments from Goldman Sachs’s asset management unit.
The fund will use equity long-short and credit and capital structure arbitrage strategies.
The fact that Sze can “deploy a broad range of hedge fund strategies, rather than just equity long-short,” makes him a rare commodity in Asia, where that range of skill isn’t common, and that bodes well for the success of the fund.
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