Bloomberg News

Ex-Goldman Traders’ Benros Hedge Fund Shut as Brummer Pulls Out

February 21, 2013

Benros Capital Partners LLP, a London hedge fund founded by former Goldman Sachs Group Inc. (GS:US) traders, is shutting down after less than two years as shareholder Brummer & Partners AB pulled its investment.

Brummer, a Swedish firm that owns 45 percent of Benros and seeded it with $300 million at its founding in 2011, announced it would redeem its investment in a statement on its website. Daniele Benatoff, one of Benros’s founders, said in an e-mail that the fund will be shut down, and declined further comment.

The fund “has not lived up to expectations,” Brummer said in the statement.

Benros is the second so-called event-driven fund founded by former Goldman Sachs traders to shut in four months. Benros, which managed $315 million as of Jan. 31, trades securities based on corporate decisions that might trigger price movements, such as mergers, management changes and share sales. It was founded by Benatoff, 33, Ariel Roskis, 37, and three other veterans of the Wall Street firm’s proprietary trading desk.

Benros declined 5.6 percent last year, according to a performance report obtained by Bloomberg. It dropped another 1.4 percent through the first six weeks of this year, bringing its decline to 7 percent since inception, Brummer’s website said.

The average event-driven fund climbed 8.9 percent in 2012, according to data from Chicago-based Hedge Fund Research Inc.

Edoma, Canosa

Edoma Partners LLP said in October that it would close down after losing money. Former Goldman Sachs trader Pierre-Henri Flamand started the London-based event-driven fund in 2010.

Brummer, based in Stockholm, is Sweden’s largest hedge-fund manager. Its recent investments include Canosa Capital LLP, a hedge fund being set up by two former Rubicon Fund Management LLP executives that will bet on global macro-economic trends.

Canosa, founded by Tim Attias and Santiago Alarco, is likely to begin trading in the second quarter, according to a statement from Brummer last week. Details of Brummer’s involvement in Canosa weren’t disclosed, and Canosa officials declined to comment.

Jacob Lannero, a spokesman for Brummer, wouldn’t comment on either Benros or Canosa. Benros’s closure was first reported by Financial News.

To contact the reporter on this story: Chris Larson in London at clarson22@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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