Orkun Kilic, a former Paulson Europe LLP partner, is reviving his hedge fund Berry Street Capital Management, having secured some $200m in commitments from investors, including Qube Research & Technologies (QRT), according to a report by Bloomberg.
The report cites unnamed people with knowledge of the matter as revealing that the London-based fund is set to begin trading as early as next month, backed by two separately managed accounts. Berry Street also plans to launch a new fund later this year targeting additional external investors, according to a the sources.
Kilic is sticking with an event-driven strategy, the same approach he pursued before Berry Street closed its doors in 2023. At its peak, the fund managed over $900m, but rising interest rates and regulatory uncertainty led the firm to return capital to investors, citing an unfavourable investment environment.
The relaunch comes at a challenging time for event-driven hedge funds, which typically profit from mergers, acquisitions, and corporate restructurings. While many anticipated a surge in dealmaking under the new US administration, market volatility, geopolitical uncertainty, and tariff concerns have dampened M&A activity.
Berry Street joins a growing roster of hedge funds receiving capital from QRT, which has allocated to about 45 external managers, including major firms such as Davidson Kempner Capital Management. QRT manages approximately $28bn, making it one of the most active allocators in the multi-strategy investment space.
Kilic, who remained active in private investments after Berry Street’s closure, will now look to capitalise on market dislocations and event-driven opportunities as his fund makes its comeback.
Despite the uncertain M&A climate, event-driven hedge funds returned 8.7% in 2023 and were up 0.8% in the first two months of 2024, according to the Bloomberg Event Driven Hedge Fund Index.
As Kilic prepares for Berry Street’s second act, investors will be watching closely to see whether the fund can navigate the complexities of today’s dealmaking environment and deliver strong risk-adjusted returns.
