Ex-Ontario Teachers PM Launches Stra

Date: Friday, October 13, 2006
Author: Alternative Investment News

Richard Whelan, a former portfolio manager at the CAD96 billion Ontario Teachers Pension Plan, has launched his own multi-strategy hedge fund firm. Dubbed King's Crossing Capital, the firm's strategy rolled out Sept. 1 with $50 million.

The quant strategy is so far only allocated to currencies but Whelan anticipates this to change soon. "I don't want to be looked at as a currencies guy," he said, adding that the firm's infrastructure needs to be built out before its equity and fixed income strategies can be accommodated. Additionally, the firm is working on a currency overlay that should launch by the first quarter. Right now all investors are in managed accounts, as the firm finalizes a Cayman- or Bahamas-domiciled fund structure.

The firm's six-person team is based in Toronto. Michael Studer, president, handles the firm's day-to-day operations. Studer has a derivatives background and was the chief financial officer at PPG Industries. Barry Noel, former chief trader at Toronto Dominion Bank, is the firm's head trader. An additional staffer, whom Whelan declined to identify, has been hired to help the firm's research and trading efforts and will start in a few weeks. Additional hires are planned to coincide with asset growth.

King's Crossing is targeting institutional investors worldwide. The investment minimum is $5 million with 2/20 fees and no lockup. Citigroup is the prime broker.