In the last ten years, a plethora of hedge funds ditched their outside clients’ money and switched their operations into single-family offices essentially to avoid too much regulatory pressure. Many also did if for performance reasons because most hedge fund managers have had a torrid time in recent years. But what are the ex-hedge fund family offices up to these days? Many are taking it easy, happy to play a less active investment role after making their millions, or even billions. But here are three making the most waves.
The poster boy of ex-hedge fund family offices, Point72 manages the money of some employees, but mostly that of Steven Cohen, the hedge-fund manager who encountered problems with the Securities and Exchange Commission a few years back. Those troubles stopped him from managing outside money, so he turned his hedge fund SAC Capital into a single-family office in 2014. But Point72’s ban on managing outside money looks to have ended earlier this year.
Still, before the ban ended, Point72 was very busy as a private investment office. It built up a huge staff, nearly 500 of which are investment professionals with offices in pretty much all the big financial centres. Point72 has set up an academy to train investment professionals. And most importantly of all, Point72 has made a ton of investments, including more than 20 into venture, many as lead investor.
Set up soon after hedge fund Everest Capital returned investors money in 2015 after being hit by a bad bet on the Swiss franc, Volta Global is effectively the private investment office of Everest’s founder and CIO, Marko Dimitrijevic, and a number of other ex-employees of the hedge fund. Under Dimitrijevic’s guidance, Volta Global is actively pursuing deals in global markets. Just this week, Bloomberg reported an activist investor effort by Volta in a Japanese construction company called Asanuma.
Apart from playing activist investment role in Japan, Volta has also been doing some direct investing in the private markets, especially in venture. It lists all these on its website. Also, Volta has been active in the commercial property market – again it lists these on its website.
Soros Fund Management
George Soros might be 87, but he’s still one of the world’s most active investors. With his hedge fund turned family office, Soros Fund Management, Soros still plays an active role in managing investments. Although he’s also hired some impressive staff, including most recently Lucy DeStefano, former head of trading at hedge fund Citadel’s Aptigon unit, according to reports. DeStefano will join high profile Dawn Fitzpatrick, the CIO of Soros’ family office. SFM has also made some notable forays into the venture sector, and there’s been some speculation the family office has started trading cryptocurrencies.