Credit Suisse in London has transferred management of an independent internal equity fund to its equity proprietary trading group. The fund, known as the Alpha Pod, is now in the hands of Grant Rippetoe, head of customer-related equity derivatives trading in Europe, and Nichola Dobinson, co-head of European cash trading. It remains a stand-alone unit. Previously it was run by Nick Moreira.
The move comes after Credit Suisse announced equity trading revenues decreased 45% on the first quarter, "due primarily to weaker results in equity proprietary trading and the cash business." Bloomberg also last week alleged the firm lost USD120 million on Korean equity derivative positions.
That backdrop has Kremlinologists trying to figure out why the London move was made. Some suggest the move is an attempt to stem losses in Moreira's group and bring it under the influence of Mike Hajialexandrou, head of European equity proprietary trading, who is well-regarded by peers.
Amy Thompson, spokeswoman, declined comment on the reason for the reshuffle and on the losses. She said Moreira will be reassigned within the firm, declining to give details of his new role. In the New Year, Dobinson and Rippetoe will hand over the group to Hajialexandrou, who referred a call to Thompson.
