New hedge fund launches are on the increase across Dubai and Abu Dhabi, as Senior Portfolio Managers from global multi-strats set up their own ventures – with many backed not by local sovereign wealth, but by major allocators in the US and Europe, according to a report by Bloomberg.
At least five portfolio managers from leading global hedge funds are in the process of launching new entities in the UAE, which has become a preferred base for traders seeking operational flexibility, favourable tax structures and increasingly sophisticated regulatory frameworks. Despite the region’s vast pools of capital, several of the biggest launches are instead anchored by blue-chip Western institutions including Brummer & Partners, Schonfeld Strategic Advisors and Morgan Stanley.
One of the largest mandates has gone to Nikolay Aleksandrov, formerly of ExodusPoint Capital Management and Millennium Management, who has secured roughly $500m from Morgan Stanley’s asset management arm to launch Continuum Capital Management, a new quant fund in Dubai. Aleksandrov is expected to run capital exclusively for Morgan Stanley under the arrangement.
Another prominent move involves Nikolaus Hildebrand, a former portfolio manager at Brevan Howard and ExodusPoint, who has joined Sweden’s Brummer & Partners to lead a new fixed-income fund. The vehicle, Brummer Fixed Income, has launched with approximately $500m from Brummer and a further $600m raised from external investors. Trading began last month.
The wave of launches also includes Abu Dhabi-based Insight Capital Management, founded earlier this year by Omar Newera, who has secured a $500m anchor commitment from Schonfeld Strategic Advisors. Insight will initially run capital solely for Schonfeld as it establishes its platform.
