First New York Building Hedge Fund Business(HFAlert)

Discussion in 'Prop Firms' started by dealmaker, May 16, 2019 at 5:53 AM.

  1. dealmaker

    dealmaker

    First New York Building Hedge Fund Business(HFAlert)
    Proprietary-trading shop First New York is taking another stab at launching a hedge fund. The firm, whose 125 internal and external portfolio managers run a little more than $3 billion of gross assets, envisions a multi-strategy vehicle that largely would mirror its prop-trading portfolio. Since the 1980s, First New York has earned mostly double-digit returns, with low net exposure and little volatility. The New York firm plans to begin trading the FNY Total Return Fund in the second half, seeding it with $200 million of gross assets. It then would spend some time developing a track record while marketing the vehicle to outside investors.
     
  2. gaussian

    gaussian

    I wouldn't invest my worst enemy's money in BBB-. How does a hedge fund, a place that is supposed to have great risk control, be so risky they can't even get proper corporate debt? LOL.
     
  3. newwurldmn

    newwurldmn

    Because they are using the money to lever it at a brokerage account and then trade it.

    Of course debt like that would be very low quality paper.