KBC Alternative Investment Management, which has $3.7 billion under management, is expanding its credit arbitrage operations in both London and New York. Andy Preston, managing director in London, says the firm is looking to hire 10-15 staffers, including quants, financial engineers and credit derivatives traders. The move comes as the firm is considering launching a long/short fund on single-name credit-default swaps, which would be partly statistically driven and may add $40 million to the group's capacity.
"We see enormous scope for expansion of strategies in credit arbitrage," said Preston. Approximately 60% of KBC alternatives business is based on credit arb strategies.