Hedge fund GSA Capital rides tech wave as managers share £110 million potComments Off on Hedge fund GSA Capital rides tech wave as managers share £110 million pot
A quirky Mayfair hedge fund led by one of the richest fund managers in Britain has split a £110 million-plus payday after its computer-driven funds side-stepped wild swings in global markets last year.
GSA Capital, founded by former Deutsche Bank prop-trading star Jonathan Hiscock, boosted revenues by 25% to £146 million for the 12 months to March 2015 after the group’s four data-driven funds surged in value.
Eighteen partners, including two entities, shared profits of £112.3 million, an average of £7 million each. One of the entities, HFFX, is made up of a team traders and is thought to have got £54.7m of the money.
The company, which runs $4 billion for investors and was set up in 2005, benefited from the strong performance of flagship funds GSA International and GSA QMS funds, which both rose about 12%.
Hiscock, the 20th richest hedge fund boss in Britain with a £250m fortune, has modelled the Green Park-based firm on idiosyncratic tech outfits like Google rather than traditional finance houses.
The hedge fund hires rarely — just 25 people out of 5000 applicants since 2010 — and is stocked with PHDs, including tech chief Sorabain Wolfheart de Lioncourt.
It also distanced itself from Mayfair peers by ditching performance fees on a low cost fund, charging a flat rate management fee of 0.5%.
Hiscock launched GSA after carving out the Global Statistical Arbitrage unit he ran at Deutsche, taking 15 staff with him.
He then hired David Khabie-Zeitoune, a former trader at Brevan Howard, as chief executive.