Fri, Oct 28, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Guggenheim Partners launches prop trading platform in pursuit of aggressive growth story

Wednesday, March 02, 2011
Opalesque Industry Update - Guggenheim Partners, a global diversified financial services firm, announced the launch of Guggenheim Global Trading LLC (GGT) which will invest capital on behalf of the firm, its shareholders, its affiliates and a small group of institutional investors. GGT will be based in Purchase, NY, and will be headed by Loren Katzovitz and Patrick Hughes, both managing partners of Guggenheim Partners.

“The current environment affords the firm a unique opportunity to hire seasoned talent out of what is a reshaped Wall Street landscape,” said Katzovitz. “As a private firm, we believe there are attractive opportunities to invest capital supporting trading strategies with high probabilities of success, particularly as banks are required to divest or significantly reduce their proprietary trading activities and smaller hedge funds find it uneconomical to continue.”

“Legislative and regulatory changes globally have created a unique timing opportunity with regard to the availability of high-quality traders and trading groups,” said Hughes. “The launch of GGT however, is not simply about access to talent; we further believe that the reduction in proprietary trading globally, as a result of the new regulatory regime, should ultimately result in wider investment spreads in arbitrage and other strategies.”

Guggenheim is launching GGT with an initial target allocation of approximately US$500 million, with a longer-term goal of US$2 billion over several years. The team will consider raising capital on a limited basis from third-party investors, but only to the extent that such third parties would be interested in being an equity partner with Guggenheim. GGT plans to hire approximately 20-25 trading groups within the next 12 months. While GGT may enter into strategic relationships with existing trading groups that have unique trading styles and strategies, its general preference will be to build its strategies outright.

“We look forward to growing this new business,” said Mark Walter, chief executive officer of Guggenheim Partners. “GGT’s innovative approach is consistent with Guggenheim’s philosophy of offering our clients and equity owners exceptional investment opportunities.”

“In light of long-term market conditions, we believe GGT has significant potential to produce many compelling investment strategies that will benefit the various needs of our clients,” said Scott Minerd, chief investment officer of Guggenheim Partners.

In 2002, Katzovitz and Hughes founded Guggenheim Advisors (GA), a hedge fund of funds managed account platform. In 2006, a 71.5% interest in GA was sold in a transaction that created compelling shareholder value. GA was subsequently repurchased by Guggenheim Partners. Katzovitz and Hughes have stepped down from their roles at GA in order to launch GGT. As a result, GA is currently under new leadership and pursuing a growth strategy supported by Guggenheim as well.

In addition to its headquarters in Purchase, GGT will have trading locations in Chicago, San Francisco, Geneva and a yet-to-be-determined location in Asia.

(press release)



What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa

  2. Investing - Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities, Lansdowne's Roden says likes animal genetics company Genus[more]

    Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities From As ValueWalk reported back in February, earlier this year Andrew Lawrence set out to raise $250 million to $500 million for a fund that will buy stakes in hedge funds that have suspended redem

  3. Opalesque Roundtable: Style drift, poor communications and credibility fatigue are biggest red flags for hedge funds investors[more]

    Komfie Manalo, Opalesque Asia: Style drift, poor communications and credibility fatigue are the biggest red flags for hedge funds investors, said participants of the latest 2016 Opalesque Investor Roundtable, sponso

  4. Barclay CTA Index down 0.40% in September (+0.10% YTD)[more]

    Managed futures traders lost 0.40% in September according to the Barclay CTA Index compiled by BarclayHedge. The Index is up 0.10% year to date. “The US Fed, in spite of its hawkish tone, opted to hold rates steady which roiled financial markets,” says Sol Waksman, founder and president of BarclayHe

  5. Opalesque Exclusive: Meet Emma, your friendly A.I. helper[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Shaunka Khire, who co-designed an artificial intelligence (AI) robot called EMMA/MANSI, talks to Opalesque