Bloomberg News

Ex-Rubicon CIOs Start Canosa Fund With as Much as $300 Million

May 01, 2013

Tim Attias and Santiago Alarco, two former executives at Rubicon Fund Management LLP, raised as much as $300 million for their own hedge fund, almost a year after settling a lawsuit brought by their former employer, two people with knowledge of the talks said.

Canosa Capital LLP began trading today with backing from Brummer & Partners, Sweden’s largest hedge-fund manager, said the people, who declined to be identified because the talks are private. Raza Khan, Canosa’s chief operating officer, confirmed the fund began trading today. Early investors will be charged a 1 percent management fee and 20 percent performance fee, less than the 2 percent firms typically charge, he said by telephone.

The so-called global macro fund will seek to profit from broad economic trends by trading everything from stocks to bonds to currencies, with a focus on fixed-income and foreign exchange. Attias, 47, and Alarco, 49, were joint chief investment officers and ran Rubicon’s global macro fund until leaving at the start of 2011. Rubicon’s fund climbed 15 percent in 2010, beating the average 4.4 percent gain for macro funds that year, data compiled by Bloomberg show.

Rubicon sued the two for more than 100 million pounds ($156 million) after they left the firm, saying they conspired to start a new firm while one of them was still working at the London-based hedge fund. The pair settled the lawsuit a year ago, agreeing to pay an undisclosed sum.

Brummer’s Multi-Strategy Fund is providing most of Canosa’s assets, while Brummer & Partners is taking a stake in the fund management company, the people said. Stockholm-based Brummer manages about $16 billion, making it one of Europe’s largest hedge fund managers. Officials at Brummer declined to comment.

To contact the reporters on this story: Chris Larson in London at clarson22@bloomberg.net; Jesse Westbrook in London at jwestbrook1@bloomberg.net

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


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