- Seth Turkeltaub is the latest portfolio manager from Izzy Englander’s Millennium to start his own fund.
- Turkeltaub’s new fund is called Concentric Capital Strategies, he confirmed to Insider.
- He joins a list of dozens of other former Millennium investors who have started their own funds.
- Visit Business Insider’s homepage for more stories.
Seth Turkeltaub has left Millennium after more than a decade managing money for Izzy Englander to start his own fund.
Concentric Capital Strategies will be a Stamford, Conn.-based long-short equity manager, Turkeltaub confirmed to Insider. Morgan Stanley will serve as the prime broker for the new firm, sources tell Insider.
This is the second fund Turkeltaub has launched. Prior to working for Englander, he founded Searock Capital in 2002 after working billionaire Steve Cohen’s SAC Capital as a portfolio manager for two years.
It is unclear exactly how much money Turkeltaub is going manage at first, but sources say there is a significant anchor investor who is putting hundreds of millions into the new venture. In a statement, Turkeltaub said the firm already has “significant backing” and believes he has created an investing style that is able to turn “supply and demand imbalances” into investment opportunities.
“Conversion of risk into return is the essence of successful portfolio management. Yet the majority of risk models used by investors globally are fundamentally flawed. Beta is nothing more than a correlation to the market that doesn’t accurately reflect daily price behavior for securities. Our proprietary risk management model does,” he said in the statement.
Millennium declined to comment on when Turkeltaub left the firm or if Englander is backing the new firm.
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After a slow launch environment during the first half of 2020, this year has already seen some new funds crop up quickly following a strong close to last year. Red Cedar from former WorldQuant executive Alexander Chernyy plans to take advantage of the wide range of datasets now available to money managers, and former Marble Ridge executives Stephen Schembri and Christopher Bauer have started event-driven Valletta Capital Management, according to LinkedIn.
Turkeltaub joins Englander’s extensive alumni network of former employees who have gone on to start their own firms. The most notable of these funds is Michael Gelband’s ExodusPoint Capital Management, which was the largest-ever hedge fund launch.
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