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Russell Abrams is an American hedge fund manager and entrepreneur who is the founder of Russellcar, a taxi cab rent-to-own company in Buenos Aires. [1]
Abrams started a career on Wall Street working at Goldman Sachs Asset Management developing quantitative models and doing research for Fischer Black, co-developer of the Black–Scholes options pricing model. [1] Between 1997 and 2000, Abrams was the co-head of Equity Derivatives and Convertible Arbitrage at Merrill Lynch. [2] In 2001, Abrams founded Titan Capital Group, [3] [4] [5] which was one of the first volatility arbitrage funds [6] [7] and at its height had over $1 billion AUM. [8] Titan funds were included in the Wall Street Journal's list of "The Hedge Fund 100" in 2009 [9] and 2010,[ citation needed ] and won Hedgeweek's award for Best Relative Fund Manager in 2012. [6]
While at Titan, Abrams made strategic investments in Argentina, which led to Abrams and his wife, Sandra Piedrabuena, founding Russellcar. [10] Abrams has pledged to spend over $100 million on sustainable-only vehicles. [11] [12] The company offers credit to women in order to help them rent-to-own taxis.
Abrams helped fund an endowment for the New York Public Library Young Lions Fiction Award. [13]
In economics and finance, arbitrage is the practice of taking advantage of a difference in prices in two or more markets; striking a combination of matching deals to capitalise on the difference, the profit being the difference between the market prices at which the unit is traded. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price.
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing to institutional investors, high net worth individuals, and accredited investors.
Long-Term Capital Management L.P. (LTCM) was a highly-leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York.
Event-driven investing or Event-driven trading is a hedge fund investment strategy that seeks to exploit pricing inefficiencies that may occur before or after a corporate event, such as an earnings call, bankruptcy, merger, acquisition, or spinoff. In more recent times market practitioners have expanded this definition to include additional events such as natural disasters and actions initiated by shareholder activists. However, merger arbitrage remains the best-known investment strategy within this group.
Proprietary trading occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm's own money, aka the nostro account, contrary to depositors' money, in order to make a profit for itself. Proprietary trading can create potential conflicts of interest such as insider trading and front running.
Citadel LLC is an American multinational hedge fund and financial services company. Founded in 1990 by Kenneth C. Griffin, it has more than US$50 billion in assets under management as of May 2022. The company has more than 1,400 employees, with corporate headquarters in Chicago, operational headquarters in Manhattan, and offices throughout North America, Asia, and Europe. Founder, CEO and Co-CIO Kenneth C. Griffin owns approximately 85% of the firm.
The following outline is provided as an overview of and topical guide to finance:
Man GLG is a discretionary investment manager and a wholly owned subsidiary of British alternative investment manager Man Group plc. It is a diversified and multi-strategy fund manager that operates strategies including equity long-short funds, convertible arbitrage funds, emerging market funds and long-only mutual funds. The firm is also a founding member of the Hedge Fund Standards Board and a signatory of the Principles for Responsible investment. As of 2022, Man GLG had $35.4 billion assets under management.
Farallon Capital Management, L.L.C. is an American investment firm that manages capital on behalf of institutions and individuals. The firm was founded by Tom Steyer in 1986. Headquartered in San Francisco, California, the firm employs approximately 230 professionals in eight countries around the world.
Mark Spitznagel is an American investor and hedge fund manager. He is the founder, owner, and chief investment officer of Universa Investments, a hedge fund management firm based in Miami, Florida.
The Galleon Group was one of the largest hedge fund management firms in the world, managing over $7 billion, before closing in October 2009. The firm was the center of a 2009 insider trading scandal which subsequently led to its fall.
Magnetar Capital is a hedge fund based in Evanston, Illinois. The firm was founded in 2005 and invests in fixed income, energy, quantitative and event-driven strategies. The firm was actively involved in the collateralized debt obligation (CDO) market during the 2006–2007 period. In some articles critical of Magnetar Capital, the firm's arbitrage strategy for CDOs is described as the "Magnetar trade".
Paulson & Co. Inc. is an American investment management firm, established by its president and portfolio manager, John Paulson in 1994. Specializing in "global merger, event arbitrage and credit strategies", the firm had a relatively low profile on Wall Street until its hugely successful bet against the subprime mortgage market in 2007.
Jeremy Frommer is an American financier and entrepreneur based in New Jersey. His career includes over two decades on Wall Street, working as a hedge fund and portfolio manager, and on the sell-side of the financial industry, building and selling two financial services companies. He is CEO of Jerrick Ventures Inc., a company that acquires, develops and produces content across all forms of media. Frommer is depicted in Michael Lewis' book Flash Boys. In 2012, Frommer discovered the "Guccione Collection," a large collection of unpublished works and photos owned by Bob Guccione, the founder of the Penthouse empire.
Boaz Weinstein is an American hedge fund manager and founder of Saba Capital Management. He rose to prominence at Deutsche Bank in the early and mid 2000s with his credit default swap and capital structure arbitrage trading strategies. He then formed a proprietary trading group within Deutsche Bank. After leaving the bank in 2009, Weinstein started Saba Capital Management as a separate hedge fund. As of October 2020, Saba manages $3.3 billion in assets.
Nelson Saiers is an American mathematical artist and former hedge fund manager. Before 2014, he worked in finance as a Managing Director at Deutsche Bank AG and as the Chief Investment Officer at Saiers Capital, LLC. In 2014, Saiers left finance to create mathematics-based art.
Artradis Fund Management, founded in 2002, was an Asian long volatility biased multi strategy alternative asset manager with operations centered in Singapore and presence in the BVI and Switzerland. Its flagship funds, Barracuda and AB2, conducted market-neutral trading strategies including index arbitrage, warrant arbitrage, stock class arbitrage, convertible bond arbitrage, volatility arbitrage, volatility dispersion, and dividend arbitrage. A common theme through these strategies was to be long tail risk, primarily through volatility.
Pine River Capital Management L.P. is an asset management firm. The firm trades stocks, fixed income, derivatives and warrants. As of 2018 the company manages approximately US$7 billion across three actively managed platforms: hedge funds, managed accounts and listed investment vehicles to support a number of strategies including interest rates, mortgages, equity long/short, event-driven equity, and global convertible bond arbitrage. The company is currently managed by founder and CEO Brian Taylor and 6 partners.
Fusion Asset Management LLP is an asset management firm based in central London specialising in managing volatility risks and risk hedging. Established in 2004 by Kirill Ilinski, a former JP Morgan trader, Fusion nowadays is a group of companies managing around £1 billion across a variety of volatility-related funds and advisory services.
In the 1990s he researched derivative strategies at the US investment bank, before founding the hedge fund Titan Capital Group in 2011.