London-headquartered investment bank HSBC has on-boarded Chris Rivelli to its foreign exchange options traders team. He is returning to the banking business after spending a year and a half at Brevan Howard as a portfolio analyst.
Rivelli’s FX options career started in June 2010 when he joined Credit Suisse after graduating magna cum laude from Georgetown University. Before joining European hedge fund firm Brevan Howard in August 2015, the trader was part of Deutsche Bank’s FX options team.
HSBC’s new FX options trader will be handling transactions in G10, EM & PM correlation trading according to information posted on his LinkedIn profile.
Hedge Fund Industry Talent Outflows
Rivelli left Brevan Howard in December 2016 as massive outflows from the hedge fund industry kicked in. Investors pulled out over $4.4 billion from the company in the second half of 2016 after the firm posted losses in 2014 and 2015.
According to a WSJ report, Brevan Howard performed strongly in the final three months of the year, returning 7 percent and closing 2016 up 3 percent.
The fund is run by Switzerland-based British billionaire Alan Howard. The company’s performance until 2013 has been impeccable with 11 consecutive years of returns.
Over the weekend, billionaire investor Warren Buffett released his annual report to Berkshire Hathaway shareholders outlining ‘the bet’. The investment guru made a public bet nine years ago that no set of five hedge funds would outperform the S&P 500 index over a period 10 years.
An active debate about the fees charged by the industry has revitalized a debate about the relative underperformance of the hedge fund industry since the financial crisis of 2008. Buffet argued that low-cost index funds would outperform expensive hedge funds and has been proven correct.
One of the co-managers of Protégé Partners is the counterpart to Mr Buffet’s bet.