Hedge fund giant Soros Fund Management is on the prowl for credit derivatives traders for its flagship Quantum Endowment Fund in New York. The hedge fund, which is the sixth-largest fund in the world with USD7 billion under management according to Institutional Investor, is hiring to replace six convertible bond specialists, including credit derivatives staffers, who quit last summer to join rival hedge fund manager Duquesne Capital Management, according to officials familiar with the fund's plans. But it could not be determined whether the new hires are being sought only to replace the departures, or to also beef up the firm's credit derivatives trading presence. Michael Vachon, spokesman in New York, declined comment.
Soros is not a large player in the credit-default swap market and with most hedge funds increasing their use of the product, credit professionals said Soros may also be coming around to their potential. One credit head countered it would be surprising if Soros began trading the product heavily as the firm's chairman, George Soros, has previously indicated a distrust of derivatives in general.
