August 5, 2016 / 8:49 AM / 3 years ago

Hedge fund BAM strategy move ends $250 million discretionary play - source

LONDON (Reuters) - Hedge fund Balyasny Asset Management (BAM) is closing a $250 million “discretionary” portfolio run by Torbjorn Andreassen who is leaving the firm, a source told Reuters on Thursday.

BAM manages a total of $12 billion, primarily in its Atlas Global fund, and allocates some of this cash to teams of underlying portfolio managers such as Andreassen, who had been with the hedge fund in London for almost two years.

The firm, which was founded in 2001 by Dimitry Balyasny, is now turning its attention to hiring a new team of traders who will focus on pure “machine-driven” investing, rather than Andreassen’s discretionary strategy which involves plugging trade ideas into a computer which it then executes.

Andreassen left after BAM opted to focus on pure “quant” strategies, alongside its core fundamental stock-picking, the source said. BAM did not respond to requests for comment.

Hedge funds based on systematic trading programmes, driven in whole or partially by a computer, have outperformed rivals this year after many made money on an oil price fall and Britain’s EU referendum.

That has helped assets in systematic hedge funds to grow to $270 billion as of June 30, data from industry tracker Hedge Fund Research showed.

Andreassen was deregistered from the firm on July 26, Financial Conduct Authority filings showed.

Editing by Alexander Smith

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