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Ex-Citadel Trader Northridge Gets $1 Billion From Marshall Wace

(Bloomberg) -- Richard Northridge, a former portfolio manager at Citadel, has received $1 billion from Marshall Wace to trade for its flagship hedge fund.

London-based Marshall Wace allocated the money to a global cyclical stock-trading book run by Northridge this month, according to an investor letter seen by Bloomberg. This initial backing, which is part of the firm’s main $22 billion Eureka hedge fund, will scale up as Northridge builds out his team, the firm wrote to clients.

Northridge was previously a money manager at one of Citadel’s stock-trading units, Surveyor Capital, and joined Marshall Wace earlier this year.  

The world’s biggest hedge funds are competing for a limited pool of talent. Last year, Marshall Wace imposed a new fee on clients to help reward top performers and hire traders who could manage larger portfolios.

A representative for Marshall Wace, which manages about $69 billion, declined to comment.

The Eureka fund is managed by firm’s co-founder Paul Marshall. The fund runs a basket of sub-strategies, which are led by sub-managers. The fund made 2.8% in November, boosting year-to-date returns to about 14%.

“Our managers traded well over the US election period,” the investor letter said, adding that the fund was positioned for a Donald Trump victory and most of its “Trump trades,” including Bitcoin, contributed to profits.

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