It wasn’t long ago that MKP Capital Management, a “diversified investment manager” (hedge fund) was hiring from investment banks. After a few bad years, that seems to have changed.
The fund has parted ways with two of the traders it hired from banks during an expansionary period a few years ago. David Perez, a former Goldman Sachs equity index volatility trader who joined from Goldman Sachs in New York in 2013, has gone. Andrew Quessy, a senior macro portfolio manager who joined from UBS in 2011, has gone too.
Quessy has seemingly given up on hedge funds and joined Affiniti Finance, which describes itself as as company that, supports “individuals and companies seeking access to justice” by offering loans to cover court cases or help deal with injuries. Perez’ whereabouts are unknown.
The two men’s exit reflects the hard times that have hit the hedge fund industry. It was less than two years ago that MKP was being celebrated as one of a handful of U.S. hedge funds to push into Europe. However, MKP has had a few difficult years and some of its “opportunity” funds are down over a three year period. Although the FCA Register suggests MKP Capital’s European office still employees nine people, the European website it said up in 2013 no longer exists.
Perez and Quessy aren’t the only people to leave MKP this year. Bloomberg reported in February that Christopher Muller left the fund in London after only joining from MKP’s U.S. office a year earlier. Rebecca Ward, MKP’s former head of client development in the UK also left in August for Fuchs Capital Partners.
Quessy’s decision to go and do something worthwhile instead is typical of many senior hedge fund managers now. “Nothing about running a hedge fund business today is easy,” said Geoff Bamber, former CIO of Skyline Capital Management in May.”There is pressure on top line. There is pressure on costs. Client service is becoming more onerous. There is pressure from regulators. Hedge funds are just in a difficult place right now.”
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