Former Greenlight Exec Plans Equity Fund
Equity specialist Andrew Rechtschaffen is again building a hedge fund shop.
Rechtschaffen, most recently of Greenlight Capital, is calling his New York operation Arex Capital. Also on board is chief financial officer Jason Abrams, who previously held the same title at hedge fund operator Broadfin Capital.
The effort marks the second time Rechtschaffen has started his own hedge fund. In 2008, he launched a firm called Obrem Capital with $800 million. Before that, he worked at Citadel, and had previously served a stint at Greenlight.
Rechtschaffen shuttered Obrem in 2011 to rejoin Greenlight, a New York fund manager led by David Einhorn. He left his post as an analyst and partner last month.
Greenlight notified investors of Rechtschaffen’s exit in an April 25 letter that also disclosed the departure of research analyst Jaime Lester, who has joined hedge fund startup Cerrano Capital. Lester arrived at Greenlight in 2014 after nine years running Soundpoint Partners.
“It’s been a couple years since we’ve had an investment team departure,” Greenlight told investors.
According to Bloomberg, Greenlight lost 1% in April to bring its year-to-date return to 0.4%. The firm gained 9.4% last year, for an annualized net return of 16% since its inception in 1996.
Along with Rechtschaffen and Abrams, Arex’s staff includes operations head Valerie Toomey.
CORRECTION (5/10/17): This article has been revised. The original version incorrectly described Andrew Rechtschaffen’s position at Greenlight Capital. He was an analyst and partner at the firm.