A hedge fund set up by buy-side veterans and staffed by senior investment banking traders has doubled revenues over the past 12 months and drastically increased pay for its employees.
Bybrook Capital, the absolute value credit fund founded by former Eton Park Capital Management partner Robert Dafforn in 2014, made £10.5m in revenues last year, up from £4.6m. It has seven partners, including senior former employees of hedge funds like Capula Investment Management, BlueBay Asset Management, and Marble Bar Asset Management. It has also hired from the likes of Credit Suisse, Morgan Stanley and Deutsche Bank.
Bybrook, which received $200m in initial seeding funding from Blackstone Group, is one of a select group of small hedge funds to thrive last year, according to its new accounts on Companies House. It paid its partners an average of £814k in 2016, up drastically from the £297.4k average pay per head it shelled out in 2015.
As well as Dafforn, Bybrook counts among its partners Tariq Hamoodi, a former Morgan Stanley emerging markets credit trader, Glen Mifsud, former co-president of Capula Investment Management, Jamie McFarlane, a former Deutsche Bank leveraged finance banker and analyst at Park Square Capital, and William Mansfield, who previously worked for Berkeley Asset Management and Citigroup.
Despite a positive 2016, Bybrook remains very much a tiny operation. It has just 10 employees registered with the Financial Conduct Authority, and its most recent hire was Matthew Drayon, the former finance chief at Marble Bar Asset Management, who joined as a partner in May.
More recently, it has focused on bringing in junior talent from investment banks. Ash Thomas-Watson, an associate at Macquarie, and Max Bossino, a credit analyst at Morgan Stanley, both joined Bybrook as analysts in 2016.
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