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How to blow up a hedge fund career on Bloomberg chat

Neil Phillips was no newbie. Nor was he in dire need of money. In the early 2000s, he spent three years at Morgan Stanley, and until 2014 at hedge fund BlueBay Asset Management, where he was a macro portfolio manager for nearly 19 years. Glen Point Capital, a fund founded by In 2017, he earned £17 million (perhaps as the highest paid partner) according to Company House filings.

Still, Phillips was arrested and charged with conspiracy to blow up his career and manipulate currency markets for a profit of just $20 million. I made the elementary mistake of discussing

Details of Phillips’ alleged efforts are set out in an indictment from a US court where he was arrested in Spain earlier this week. Late on Christmas night in 2017 and into the morning of his boxing day, Phillips said Rand would be paid if he traded below 12.50 a one-touch barrier to help him raise $20 million from his options. , the dollar and land exchange rate he is said to have tried to depress below 12.50. From Oct. 30, 2017 to Jan. 2, 2018 he was worth $1 even for a very short period of time. Bloomberg’s Matt Levine calculates that Phillips probably paid him $2 million for the option.

Late on Christmas night, when trading volumes were low and TV was sluggish, Phillips is said to have fancied a chance to make the rand stronger against the dollar after sitting idly on options for nearly two months. . Sitting in South Africa, he announced a deal in the hundreds of millions of dollars in the early hours of his boxing day, sending a Bloomberg chat message at 12:09 a.m. saying, “My goal is to trade up to 50. ‘ and repeated this seven minutes later in another message. .

Given that Phillips only unleashed hundreds of millions of dollars to make ends meet and otherwise sparse trading volumes, it’s possible that his activity would have been noticed even without Bloomberg. . But the general judgment from others in the market seems to be that even if you try to do something silly like this, you shouldn’t document it on Bloomberg. It’s the place. It’s not clear what Phillips had in mind.

Since then, Phillips’ career has stalled. Glen Point Capital laid off a large number of employees earlier this year following a failed merger with Eisler. The people were popular at the time, but unfortunately it doesn’t mean they were involved in Phillips’ activities, but many are now let go. According to the Financial Times, Kirkoswald Capital and Balyasny has suspended or fired former Glen Point employees in recent days.

Meanwhile, Phillips now faces lawsuits and a potential prison sentence. His fortunes were already deteriorating: Glenpoint’s highest-paid man made ‘only’ £3m in 2020. He wants to start his GoFundMe for defense costs You might think that. Unfortunately, the hedge fund seems to have relatively few of his friends in his community.

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Photo by Tim Mossholder on Unsplash

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