Davidson Kempner Vet Readies London-Based Hedge Fund

Feb 6 2015 | 5:01am ET

By Will Wainewright (Bloomberg) -- Markus Taraba, formerly a money manager with Citadel Investment Group and Davidson Kempner European Partners, is starting a hedge-fund firm in London, according to two people with knowledge of the matter.

Monterone Partners will deploy a European-focused long- short equity strategy and begin trading in the first half of this year, the people said, asking not to be identified because the plans aren’t public. Taraba declined to comment.

Taraba worked in London for two of the biggest U.S. hedge funds, Citadel and Davidson Kempner, which both oversee more than $20 billion. He managed money for Ken Griffin’s Chicago- based Citadel from 2005 to 2009 before joining Davidson Kempner’s London office, according to his LinkedIn profile. He left that firm last April, according to the U.K.’s Financial Services Register of individuals approved to work in finance.

Monterone is raising money from investors and hasn’t decided how much it will start with, the people said. It will attempt to profit from bets that company stocks will either rise or fall. Taraba deployed a similar strategy at New York-based Davidson Kempner, the people said.

Other new hedge funds starting in London this year include Silver Ridge Asset Management UK, headed by Citigroup Inc.’s former currencies trading and local markets chief Anil Prasad, which has raised more than $500 million, according to three people with knowledge of the situation. Chris Rokos, who co- founded Brevan Howard Asset Management, is opening a macro fund said by bankers who serve the industry to be the largest in Europe this year.

Taraba, who will be chief investment officer, registered Monterone Partners with business associate Max Herberstein in the U.K. last July. Herberstein previously worked for private- equity firms TDR Capital and Hicks, Muse, Tate & Furst, according to the Financial Services Register. He didn’t respond to a LinkedIn e-mail seeking comment.

Phillip Chapple has joined as chief operating officer from KB Associates, a hedge-fund consulting firm where he was a London-based executive director, the people said.

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