Yahoo Finance Balyasny Pulls Cash From Ex-Elliott Trader’s Hedge Fund Sparta
(Bloomberg) -- Balyasny Asset Management has withdrawn cash from Franck Tuil’s hedge fund within a year of backing the former Elliott Management trader.
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The $250 million managed account Balyasny gave to Sparta Capital Management earlier this year has been terminated, people with knowledge of the matter said, asking not to be identified because the details are private.
Sparta, which is trying to establish itself as an activist investor, has suffered losses this year. The hedge fund declined 8% in the first quarter, hit largely by wrong-way bets on Grifols SA and John Wood Group Plc shares. The decline wiped out much of the 10% gains Sparta made last year and the low single-digit return it posted over the previous two years, Bloomberg News has reported.
Representatives for Chicago-based Balyasny and London-headquartered Sparta declined to comment.
Firms such as Balyasny, where teams of traders bet across asset classes, are increasingly becoming a new source of cash for hedge funds run by individuals. One of this year’s biggest hedge fund startups, Diego Megia’s Taula Capital Management, received $3 billion from Millennium Management, which is also backing the planned hedge fund of Coatue Management’s Aaron Weiner with multiple billions of dollars.
Such investments are typically made through so-called managed accounts, which give the capital provider flexibility and transparency over how the cash is deployed. The accounts are often bound by the risk limits set by the mutlistrategy firms.
Tuil started his own hedge fund in 2021 after a two-decade career at Elliott, which is one of the world’s most feared activist investors. He oversaw several of Elliott’s high-profile wagers, including its buyout of the football club AC Milan, and its push for changes at companies including Pernod Ricard SA, Bayer AG and Uniper SE.
--With assistance from Swetha Gopinath.
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