Eisler Capital

Last updated

Eisler Capital (UK) Ltd
Company type Private
Industry Investment management
Founded2015;9 years ago (2015)
Founder
  • Edward Eisler
Headquarters
London
,
United Kingdom
Key people
270 (2023)
AUM US$4 billion (January 2024) [1]
Website www.eislercapital.com

Eisler Capital (Eisler) is a multi-strategy hedge fund management firm headquartered in London, founded in 2015 by former Goldman Sachs partner Edward Eisler. Originally established as a global macro fund, it transitioned to a multi-manager investment approach in 2021.

Contents

The firm, which started as a five-person team in St James's Place, now manages approximately $4 billion in assets with more than 270 employeers in the UK, Europe and the United States.

Background

Edward Eisler started his eponymous hedge fund in 2015, following a 20-year career at Goldman Sachs, where he was co-head of the global securities business. He established Eisler Capital with its first hedge fund focusing on global macro in 2015. [2] [3] [4] [5]

In February 2021, Eisler raised $1billion to launch its Multi Strategy Fund. This marked Eisler's entry into the multi-strategy sector. [6]

In November 2022, Eisler closed its first hedge fund, Eisler Capital Master Fund which had focused on global macro. The fund had shrunk with a loss of 8% that year and the firm wanted to transition to a multi-strategy approach which was more popular among investors. [5]

Following this move, Eisler Capital decided to focus on its multi-strategy approach, and Eisler's multi-strategy fund became the firm's flagship. It had a gain of 15.1% in 2022, [7] and 9.8% in 2023 [8] while continuously growing AUM. At the same time, Eisler decided to shelve plans to launch other funds. [5]

In November 2023, following a growing trend in the multi-strategy sector, Eisler decided to reduce the amount of capital that investors could withdraw each quarter from 25% to 12.5% of their investments. This was done to prevent sudden withdrawals during periods of poor performance as well as having more predictable fees that are used for staff retention and technology investments. [9]

Corporate Affairs

In December 2021, Eisler announced plans to acquire Glen Point Capital, another London-based investment firm. However, by February 2022, the talks ended because of a disagreement on levels of risk appetite. Eisler was very risk-adverse while Glen Point would regularly take higher risk to get bigger returns. [10]

In March 2022, Eisler redeemed capital from all Russia-linked investors following the Russian invasion of Ukraine. This included over $100 million invested by LetterOne, an investment firm whose founders, including Mikhail Fridman, were sanctioned by the European Union. Neither Eisler Capital nor LetterOne were subject to the sanctions. [11]

Eisler has been noted for paying high salaries to its employees. In 2022, it paid its average UK employee $1.2 million. However it has also been noted to have a harsh environment with significant turnover. In September 2023, it was reported that at least 12 senior employees had left the firm within the last six months where many had only recently joined the firm. [4] [12]

In 2024, Eisler plans to raise up to £1.5bn of capital from investors and hire up to 25 portfolio managers. The firm also plans to expand its trading in equities and commodities, as well as to scale its quantitative trading strategy business. Some of these hires will be for its equity long-short business. [13]

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References

  1. ↑ Agnew, Harriet (4 January 2024). "Citadel and Millennium outpace smaller hedge fund rivals". FT.
  2. ↑ ""Former Goldman Trading Executive to Launch New Hedge Fund"". The Wall Street Journal . 9 September 2015.
  3. ↑ Baer, Justin (9 September 2015). "Former Goldman Trading Executive to Launch New Hedge Fund". Wall Street Journal. ISSN   0099-9660 . Retrieved 25 October 2023.
  4. 1 2 "Eisler Capital: The 'intellectually honest' hedge fund paying millions". eFinancialCareers. 16 October 2023. Retrieved 25 October 2023.
  5. 1 2 3 "Eisler to Shut Its Oldest Hedge Fund to Focus on Multi-Strategy". Bloomberg.com. 2 November 2022. Retrieved 25 October 2023.
  6. ↑ "Secretive Hedge Fund Raises $1 Billion to Make Big Leveraged Bets". Bloomberg.com. 22 July 2021. Retrieved 25 October 2023.
  7. ↑ Kumar, Nishant (24 March 2023). "Star-Led Hedge Funds Hit by Steep Losses, Stunting Their Comeback". Bloomberg News.
  8. ↑ Kumar, Nishant; Tetley, Liza (3 January 2024). "Hedge Funds Millennium, Eisler Close Out 2023 With 10% Gains". Bloomberg News.
  9. ↑ Kumar, Nishant (10 November 2023). "Hedge Fund Eisler Capital to Lock Up Investor Money for Longer". Bloomberg.com. Retrieved 19 January 2024.
  10. ↑ "Eisler's Deal to Buy Macro Hedge Fund Glen Point Falls Apart". Bloomberg.com. 17 February 2022. Retrieved 25 October 2023.
  11. ↑ "Eisler Hedge Fund Faces Investor Scrutiny of Russia-Linked Cash". Bloomberg.com. 4 March 2022. Retrieved 25 October 2023.
  12. ↑ "Hedge fund Eisler Capital's new array of London exits". eFinancialCareers. 25 September 2023. Retrieved 25 October 2023.
  13. ↑ "Hedge fund Eisler plans hiring spree to take on industry giants". Financial Times. 29 February 2024. Retrieved 5 April 2024.
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