BlueCrest Said To Back Kahn's New Quantitative Equity Fund With $300M

Jul 10 2017 | 11:34pm ET

Michael Platt’s BlueCrest Capital Management is reportedly seeding a new hedge fund being set up by Maxime Kahn, the former head of proprietary trading at SocGen.

Kahn’s new fund, named 111 Capital, is based in Paris and will start trading stocks and derivatives with $300 million in seed capital from BlueCrest in August or September, according to a Bloomberg interview he did last Friday. Additional capital won’t be sought for at least 18 months, Kahn said to Bloomberg. 

Kahn headed the prop trading effort at Societe Generale until 2013. He left the bank in September 2016 as co-head of European stock trading after helping mesh its prop traders into market making and other operations in response to stricter financial regulations governing how financial firms can use their capital. While at SocGen, he helped unwind some €50 billion in unauthorized bets made by infamous rogue trader Jerome Kerviel.

Kahn’s intentions to start a new fund were known shortly after his departure, as was significant backing from a single investor that he declined to identify at the time. His strategy will utilize computer models to invest in equities and listed derivatives, Bloomberg added.  

Platt’s BlueCrest has not been an especially active seeder, but it has backed some well-known alternative asset managers including BlueMountain Capital, Meredith Whitney’s Kenbelle Capital and Leda Braga’s Systematica. In 2015, amid intense pressure on macro hedge funds, London-based BlueCrest decided to return external capital to investors and revert to a family office. 

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