Former Tudor Star Trader Mark Hillery Joins Revolving Door Specialist Brevan Howard
Mark Hillery, who for many years brought riches to Tudor's LPs (and pocketed a princely sum for himself in the process), levering into one of the longest bull run periods in history, yet who alongside Raptor Fund manager Jim Pallotta (who shut down his fund in July), were unable to brave the storm that occurred once the Greenspan cheap credit fueled market came to a screeching halt, and left the firm last year, has joined London's multi-billion hedge fund Brevan Howard, reports FT Alphaville. The article reports that Hillery will now be responsible for trading within Brevan Howard's macro strategies (not like there are many others there). As for Brevan Howard, an exhaustive overview of the firm's retention and trading practices by Bloomberg highlights the firm's SACesque approach to employee motivation:
fires underperformers and sometimes entire desks when markets
turn against them."
Adjusted for risk, 70
percent of Brevan Howard’s money is allocated to the top seven
The traders who aren’t earning a profit find themselves
under withering scrutiny. A trader whose portfolio falls 4
percent will meet with Brevan’s chief risk officer, Aron Landy,
who will likely reduce the money he or she manages and direct a
change in tactics and a lowering of risk.
An 8 percent loss triggers a change in the trader’s mandate
and a further cut in capital.
A 12 percent drawdown warrants a “time-out” -- a shutdown
in trading that may result in a resignation or dismissal. Says
one Brevan employee, who asked not to be named, “If you last two
years, you’ve done well.”
We hope Hillery managed to carve a nice 2 year (at least) guarantee in a market where procyclical, bull market traders' resumes litter the inbox of every recruiting firm. Yet, now that Marc has to put the proverbial "capital to use" and earn his keep, one wonders just how many more up points the FTSE will see due to this most practiced currently prevalent "investment" style of momentum chasing (which if "everyone is doing it" must be right)?