Capula Hires Columbia’s Sundaresan as Research Head (Update1)

By Saijel Kishan

March 16 (Bloomberg) — Capula Investment Management LLP, a $3.5 billion hedge-fund firm in London, hired Suresh Sundaresan, chairman of the finance department at Columbia University, as head of research.

Sundaresan, 59, spent 27 years at Columbia’s business school, where he published papers on topics including treasury and risk management, Capula said in a statement today. Sundaresan has consulted for Morgan Stanley’s asset-management unit and Ernst & Young LLP, as well as serving as a resident scholar at the Federal Reserve Bank of New York.

Capula, which focuses on fixed-income investments, was founded in 2005 by Yan Huo and Masao Asai in 2005. The firm moved Jean-Marc Bottazzi to Tokyo to oversee Capula’s investment operations in Japan. Bottazzi, 40, a former managing director at JPMorgan Chase & Co., was hired by Capula last year.

Capula returned about 4 percent from its flagship global relative-value fund in the first two months of this year after gaining 9.5 percent in 2008.

To contact the reporter on this story: Saijel Kishan in New York at
Last Updated: March 16, 2009 10:23 EDT

U.K. Hedge Fund Capula Sells 5% Stake to Mitsubishi (Update1)

By Tomoko Yamazaki

Oct. 7 (Bloomberg) — Capula Investment Management LLP, the $4.2 billion U.K.-based hedge fund, sold a 5 percent stake to Mitsubishi Corp., Japan’s biggest trading company, as it aims to expand its sales network in Asia.

The stake is a “passive investment” and won’t have any management rights or board representation, according to an e- mailed statement. The stake is worth between $25 million and $35 million, Mamoru Sakai, president of Capula’s Japan unit, said by telephone today.

Capula, founded by former traders Yan Huo and Masao Asai in 2005, runs the Capula Global Relative Value Fund, which invests in fixed-income assets. The fund has returned about 15.5 percent since its inception in October 2005 and 6.5 percent this year, according to the statement. Its 2008 gain contrasts with a 32 percent slump by the MSCI World Index.

“As Capula’s strategic partner in Japan and the Asian region, Mitsubishi is expected to support the marketing of Capula funds to institutional investors in the region,” Capula said in the statement. “Capula and Mitsubishi also intend to jointly develop new financial products.”

The stake purchase is part of Mitsubishi’s efforts to strengthen its asset-management businesses through alliances, the Japanese company said in a separate statement posted on its Web site.

Tokyo-based Mitsubishi’s investment follows a 20 percent stake purchase by Goldman Sachs Group Inc.’s Petershill private- equity unit in February. Terms of the deal weren’t disclosed.

Hedge funds are private, largely unregulated pools of capital whose managers can bet on falling as well as rising asset prices and participate substantially in profits from money invested.

To contact the reporter on this story: Tomoko Yamazaki in Tokyo at
Last Updated: October 7, 2008 00:39 EDT