Wednesday, November 28, 2012

Edoma: totally how not to run a new hedge fund


       


From Hedgefundintelligence.com: It is usually not a great idea to extrapolate events at individual hedge funds into industry-wide themes or trends. In this most idiosyncratic of activities, what makes one fund or firm succeed – or fail – rarely applies more generally, in what is essentially a business about people.

But the shutdown of Edoma Partners, the London-based event-driven fund launched amid much fanfare two years ago by Goldman Sachs prop trading star Pierre-Henri Flamand, does seem to be one of those rare moments that illustrate some generic industry issues.

The demise of the firm, which had been running more than $2 billion at its peak with a team of some 20 people, was not surprising in itself. Edoma had struggled from the start, with the fund being down by about 7% since inception by the time that Flamand and his partners decided to throw in the towel at the start of November......

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