Capeview Capital is a hedge fund set up by a former investment banking trader, backed by Goldman Sachs’ private equity fund, and has a habit of hiring from bulge bracket banks. However, unlike the banking sector, pay has shot up for key staff this year.
The event-driven hedge fund focused on high yield and distressed debt is run by former Deutsche Bank trader, Theo Panos. It paid its ‘code staff’ £12.3m last year, up from £3.6m in 2012, according to accounts filed this weekend on Companies House.
Capeview is unusual in that it’s a hedge fund that outlines code staff under the FSA’s remuneration code, meaning those employees who have a material impact on the firm. However, it falls under ‘level III’ category of firm, meaning that it’s essentially free to pay its staff what it wants and will, if the situation calls for it, still offer guarantees.
Capeview was rebranded from Trafalgar Asset Management in 2012, which was set up by Panos and Lee Robinson, who previously worked for Tudor Capital, in 2001.
Last year, its operating profit was £7.6m, a figure which swelled to £17.1m during 2013. This means that each of its 11 members made an average of £1.5m in profit, up from £633k during the prior year.
Capeview has a tendency to look towards the investment banking sector for its new recruits. Ben Goldsmith, who joined last year, came from Bank of America Merrill Lynch, while options trader Andrei Boros joined from JPMorgan and Andrew Meares, manager of the Capeview Recovery Fund, signed up from Deutsche Bank in 2006. It’s also just hired Citi research analyst Adrian Cattley.
The hedge fund doesn’t break out how many code staff it employs, but says that it split £3.2m in remuneration among its 12 members last year.