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High Wall Avenue block dealer Andrew Liebeskind has left hedge fund LMR Companions after lower than a yr, in response to folks with data of his exit.
Liebeskind had joined the $11bn multi-strategy hedge fund in New York on the finish of December final yr to guide its fairness capital markets division. He was beforehand head of major methods at Surveyor Capital, which is an fairness investing a part of Ken Griffin’s Citadel, the world’s best-performing hedge fund.
The rationale for Liebeskind’s departure is unclear. LMR declined to remark. Liebeskind didn’t remark.
Block buying and selling is a profitable nook of fairness markets, during which banks public sale giant stakes in listed firms on behalf of shareholders. It’s extremely relationship pushed: funding banks usually search to gauge demand for potential offers earlier than they’ve been made public, whereas not divulging personal info to hedge fund purchasers.
Liebeskind was certainly one of a bunch of distinguished hedge fund merchants whose communications have been sought by US authorities as a part of a Securities and Change Fee probe into block buying and selling practices, in response to two folks with direct data of a subpoena issued in 2021.
The truth that Liebeskind’s communications have been sought by US authorities as a part of the probe was public data when LMR employed him. Liebeskind was not accused of any wrongdoing.
As a part of this investigation, the SEC charged Morgan Stanley’s former head of the financial institution’s US fairness syndicate, Pawan Passi, with fraud. The financial institution entered right into a non-prosecution settlement with the US lawyer’s workplace in Manhattan, paying a $249mn penalty earlier this yr to settle civil and prison fees.
Passi admitted to misconduct and agreed a deferred prosecution settlement with the US lawyer. US authorities finally discovered no wrongdoing past Morgan Stanley and Passi.
LMR was based in 2009 by Ben Levine, Andrew Manuel and Stefan Renold. They acquired seed capital from Donald Sussman’s Paloma Companions. Manuel left in 2015.
In 2018 Goldman Sachs’ Petershill Companions, which buys minority stakes in various asset managers, purchased a stake in LMR. Final month Petershill introduced it had bought its total LMR stake again to the agency’s management workforce for a complete consideration of as much as $258mn.
LMR employs greater than 300 folks in places of work in London, Hong Kong, New York, Zurich, Glasgow, Dubai and Dublin. It adopts a market-neutral method to buying and selling systematic and discretionary methods, throughout a variety of markets together with equities, fastened earnings and commodities.
This story was amended to make clear that Liebeskind’s communications have been sought by US authorities.
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