07/03/2013

Citadel Alum Starts Special-Situations Fund

One-time Citadel executive Andrew Greenberg is running a hedge fund for the first time since the credit crisis.

Working through his AMG Capital, the Chicago-based Greenberg launched a vehicle called Saker Partners on June 1 with $7.8 million — representing a mix of his own money and contributions from a few outside backers. He doesn’t plan to raise additional capital for now, and will instead focus on building a track record.

Saker Partners employs the same equity-restructuring and special-situations strategy that Greenberg has employed in recent years for his personal portfolio, complemented by opportunistic risk-arbitrage plays. Greenberg aims to hold 20-30 positions at a time.

Greenberg spent nine years at Citadel, where he eventually ran more than $1 billion as co-head of the firm’s event-driven investment team. In late 2006, he moved to Deephaven Capital as head of the former Knight Capital unit’s Deephaven Event Fund — filling a vacancy created with the departure of Matthew Halbower.

Although the Deephaven fund’s performance was flat in 2007, investors asked for 70% of their capital back amid deteriorating financial-market conditions in January 2008. Deephaven responded by unwinding the $780 million vehicle, with Greenberg leaving the same month as the mass withdrawals. He has been out of the professional capital-management business ever since.

“He was coming into a challenging seat at Deephaven after Matt Halbower left, and it was a difficult environment,” one source said.

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