Hedge fund Eisler Capital has lost 3 of the 4 people it deemed important 15 months ago
Eisler Capital should be a nicer place to work these days. In November, it brought back Carey Nemeth, its former COO, who by all accounts is a "great guy." Nemeth was expected to soften a culture that had become dominated by some of Eisler's more Marmite personalities.
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Nemeth may however have met his nemesis in Lewis Morton, who does not appear to have succumbed to his charms. Bloomberg reported today that Morton, who was one of Eisler's top portfolio managers and money generators, has handed in his resignation and is joining a different fund.
Eisler didn't respond to a request to comment. We suggested in 2023 that Morton, who operates a basis trading strategy and once worked for Morgan Stanley, was running a substantial portion of Eisler's AUM from his base in Jersey.
Bloomberg says he generated "hundreds of millions" in profits for Eisler through 2022 and 2023. However, basis trades have become more problematic recently, with hedge funds crowding into the space and governments worrying about systemic risk if trades are unwound in a hurry. It's not clear whether this is why Morton left, or whether it was something to do with Eisler's returns of only 3% for 2024 - or both.
Morton's exit means that Eisler has now lost three of the four people it made partner 15 months ago. Adrien Delattre, an equities portfolio manager who was appointed partner, is also understood to have gone, along with Morton himself and Arun Dhar, the former head of Eisler's US office, who stepped down in November when Nemeth arrived. Only Massimililiano Pignatelli, another partner and equities portfolio manager in Milan, still seems to be hanging on.
This does not seem ideal, given that Eisler named its partners in an apparent effort to retain them. A source at Eisler in 2023 described Morton and Delattre as "the two hens that lay the eggs," there.
Eisler now needs some new chickens. Bloomberg notes that 11 new portfolio managers have been hired but that another five (in addition to Morton and Delattre) have gone. Eggs may be harder to come by.
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