Faisal Syed and his investment team have moved their hedge fund strategy from Fir Tree Partners to Lighthouse Group, following Fir Tree’s decision to return external capital to investors, according to a report by Bloomberg.

The Pamli Global Credit Convexity strategy, previously an autonomous unit within Fir Tree, is now operating as a wholly owned subsidiary of Lighthouse under the name LH Pamli Partners. The report cites unnamed sources familiar with the matter as revealing that the strategy, which trades derivatives, bonds, and equity options, entered Lighthouse with over $100m in assets and is expected to reach approximately $250m by year-end with new inflows from Lighthouse and other investors.

Syed, who previously ran the strategy at Highbridge Capital Management and Ionic Capital Management before joining Fir Tree, said the move allows the team to continue its growth trajectory and capitalise on attractive market opportunities.

New York-based Fir Tree, known for its activist approach to distressed companies, announced earlier this year that it would return external capital after three decades of operations, with the Pamli business being the exception to be transferred to another manager.

Lighthouse, which manages nearly $16bn across strategies including global macro, long-short equities, and credit, will now house Syed’s team, further expanding its credit-focused offerings.