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November 28, 2018  

Cetrulo Drops Launch Plans to Join Graham

Global-macro trader Erik Cetrulo has shelved plans to launch a hedge fund.

Cetrulo, who spent 10 years at Point72 Asset Management and its predecessor, SAC Capital, formed a macro-focused firm called Entheos Capital earlier this year and began hiring key personnel for the New York operation. But in the past few weeks, Cetrulo and his team joined Ken Tropin’s Graham Capital, where they’re managing a global-macro portfolio.

Cetrulo’s team includes senior analyst Brian Cassese, who previously worked with Cetrulo at Balyasny Asset Management and Point72, and macroeconomic research chief Stephen Modelfino, formerly of Bridgewater Associates.

A source said Cetrulo decided to sign on with Graham despite the fact that Entheos fielded “quite a lot of interest” from investors. Indeed, the firm received an offer of startup capital from “a reputable seeder.” But in the end, Cetrulo opted to move his team to “an existing platform and focus 100% on investing,” the source said.

Entheos follows a long line of new and existing hedge fund firms whose principals abandoned their own businesses to join large, stable fund operations that give portfolio managers wide latitude to run their strategies. Recent examples include Bay Street Capital founder Peter Gylfe, who joined Citadel around midyear, and ShearLink Capital co-founder Aaron Husock, who joined Balyasny in the first quarter.

Graham employs multiple investment teams that pursue a mix of discretionary and systematic macro strategies. The Rowayton, Conn., firm has $15 billion under management.

After leaving Point72 in early 2017, Cetrulo spent less than a year at Balyasny. He left amid moves by the multi-strategy firm to reduce exposure to strategies Cetrulo favored, Reuters reported earlier this year.