Balyasny Asset Management wants to have a record recruiting year this time around, which won’t be too far ahead if S.A.C Capital Advisors continues to lose headcount. The hedge fund founded by Dmitry Balyasny runs a strategy similar to Steve Cohen’s troubled firm that has seen everything from criminal allegations to layoffs in the past few months.


Hires from SAC Capital

Balyasny Asset Management currently has $3.3 billion under management and runs multiple portfolios that are independently managed. According to the quarterly letter seen by ValueWalk, the fund is looking for talent in several areas these days especially in Asia, Commodities and European Equities but also in macro, TMT and healthcare. It was previously reported in August, that BAM is getting more interest from SAC alums who are looking elsewhere for jobs. Balyasny hired Justin Dodd from SAC as a consumer money manager in February. BAM also hired Matt Kummell, also a former SAC employee, as Performance Analytics Manager in January this year. The firm also hired a new CFO in second quarter, Robert Aurigema, who has worked at SECOR Asset Management, Plural Investments and S.A.C. Capital Advisors.

High gross exposure, new fundraising

Balyasny’s flasghip Atlas Global is up 7.02% through the third quarter of this year, and has added a +1.9% return in this month as of Oct 28 which puts the total gain close to +9%. Atlas Global has the largest exposure in equities at about 70%, while the rest is divided in macro and credit investments. Staying within its range of volatility, Balyasny added more risk and leverage in the past quarter; total gross exposure was at 350% until end of Q3, however net exposure was at 9%.

BAM is also reopening funds to new capital in the first quarter of 2014, which were closed in the last two years. This is an unusual move since everybody else is either closing or returning capital. The fund means to keep gross leverage at 3.5-4x of actual assets, and it will be taking new money soon. The quarterly letter notes that the fund is seeing an improving opportunity set in this quarter and plans to take on new investments.

SAC and Balyasny’s history

Reports of S.A.C Capital turning into a family office and returning all outside capital are getting stronger, so redemptions from Cohen’s hedge fund will be looking for a new home. Given that SAC’s rival Citadel Advisors is nearing full capacity and the history of SAC poaching analysts from Balyasny, it is very likely that BAM will benefit from troubles of SAC Capital. When SAC launched its trading unit Parameter Capital Management, one of the casualties as the hedge fund became embroiled in criminal allegations, it recruited several analysts including chief managers of Parameter, Glenn Shapiro and Anil Stevens from Balyasny. Before Stevens and Shapiro were employed at BAM, they used to work at SAC’s other subsidiary Sigma Capital Management. The back and forth hirings will probably continue as long as BAM and SAC keep doing business.