Large multi-strategy platforms are parting company with Portfolio Managers looking to relaunch independent even-driven hedge funds, as improving M&A volumes renew appetite for merger arbitrage, according to a report by Bloomberg.
Ed Cooper, a veteran trader who joined Millennium Management five years ago, has struck out on his own again, raising between $400m and $500m from investors including Partners Capital and Canada Pension Plan Investment Board. He is part of a wider trend of managers reviving standalone funds after leaving pod shops
Other managers making similar moves include Omar Sayed, who is preparing to launch his own strategy, and Sean Murphy, who is expected to begin trading his new fund later this year with a focus on global equities and risk arbitrage. Meanwhile, Orkun Kilic has revived Berry Street Capital Management with support from Qube Research & Technologies, and Manuel Blanco is awaiting approval for his Monaco-based firm.
The timing comes as M&A activity strengthens. Companies have announced nearly $1.1trn of transactions since June, up 30% from a year earlier, according to Bloomberg. Merger-arb funds have gained 5.7% on average through July, already exceeding annual returns from the past three years, PivotalPath data shows.
Managers argue that smaller, independent funds are better positioned to capture opportunities in complex or politically sensitive deals that pod shops often avoid.
While capital raising for new launches has been difficult in 2025, several new managers have secured backing from major investors — including multi-strategy firms themselves. For the large platforms, seeding external managers provides exposure to event-driven strategies without having to adapt internal risk constraints.
