October 21, 2015 / 5:50 PM / 4 years ago

Credit Suisse loses hedge fund hire

By Lawrence Delevingne
    NEW YORK, Oct 21 (Reuters) - Ted Seides, a hedge fund
executive who was due to join Credit Suisse on Oct 1,
sent an email to contacts on Wednesday saying he decided not to
work at the Swiss bank after all. 
    Seides, who co-founded hedge fund investment firm Protégé
Partners, resigned from that firm in June and had planned to run
a hedge fund at Credit Suisse. 
    "As we worked through the details over the last three
months, we hit a snag in reconciling conflicts between my
departure at Protégé and my arrival at Credit Suisse," Seides
wrote. "The complexities of the transition led me to take a
pause, reassess, and conclude that I wanted some more time and
space before diving into my next adventure."
    Seides, 44, confirmed the note in a telephone call
Wednesday. A spokesman for Credit Suisse declined to comment.
    Separately on Wednesday, Credit Suisse said it had completed
a strategic review and that it was raising 6 billion Swiss
francs ($6.3 billion) from investors, slimming down its
investment bank, and cutting jobs. Tidjane Thiam,
the bank's new chief executive, launched the review in July soon
after he took the reins.   
    Seides had planned to join Credit Suisse Asset Management to
work with Mino Capossela, who heads hedge-fund-like products for
retail investors known as "liquid alternative investments," and
Bob Jain, who heads global asset management. He was set to run
investing for a planned hedge fund that would use multiple
portfolio managers to place bets on the markets, a so-called
"multi-manager" approach. 
    In 2001, Seides helped found Protégé, which is now a $2
billion fund, after working under David Swensen at Yale
University's famed endowment investment unit from 1992 to 1997.
Protégé famously has a bet with Warren Buffett on whether a
group of hedge fund managers can beat a low-fee stock index fund
over 10 years ending on December 31, 2017. As of the middle of
this year, Buffett was well ahead in the bet.
    Seides also recently wrote a book about how to invest in
hedge funds, to be published by Wiley in January.
    In his letter, Seides said he is considering starting his
own investment firm, investing in hedge fund managers as part of
a larger shop, or even joining a large direct investment firm in
a senior role.
    "With this recent development and for the first time in a
decade and a half," he wrote, "I am declaring my free agency in
time for the MLB World Series (although unfortunately not in
time to help the Yankees get there)," referring to U.S. Major
League Baseball. 

 (Reporting by Lawrence Delevingne; Editing by Christian Plumb)
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