Marshall Wace Backs Ex-Citadel Trader with $1 Billion
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Marshall Wace, the world's largest hedge fund, has allocated $1 billion to a new trading book led by former Citadel portfolio manager Richard Northridge, reports Bloomberg. This significant investment is part of Marshall Wace's flagship Eureka hedge fund, which currently manages $22 billion.
Marshall Wace revealed the investment in a client letter this month. This initial allocation will likely increase as Northridge expands his team. The firm's decision reflects a growing trend among major hedge funds to compete for top talent in a competitive market.
Northridge, who previously managed money for Citadel's Surveyor Capital unit, joined Marshall Wace earlier this year. Marshall Wace, which manages approximately $69 billion in assets, implemented a new fee structure last year to attract and compensate high-performing traders capable of managing larger portfolios.
Eureka, co-founded by Paul Marshall, operates a variety of sub-strategies under the leadership of individual sub-managers. The fund achieved a 2.8% return in November, bringing its year-to-date returns to approximately 14%.
"Our managers traded well over the US election period," the investor letter stated, noting that the fund was positioned for a Donald Trump victory. Several "Trump trades," including Bitcoin, contributed to the fund's recent profits.
Marshall Wace declined to comment on the new investment.