Sack is joining US$21bil Balyasny after a trying year for the firm. — Bloomberg
New York: Brian Sack, a former managing director at D.E. Shaw & Co. and ex-head of the US Federal Reserve Bank of New York’s markets group, has joined multi-strategy hedge fund Balyasny Asset Management.
Sack, who departed D.E. Shaw in January 2023 after about a decade, most recently serving as director of global economics, will be a portfolio manager and head of macro strategy at Balyasny, according to people familiar with the matter.
A representative for Balyasny declined to comment. Sack started at the firm on Monday.
Sack is joining US$21bil Balyasny after a trying year for the firm.
It returned just 2.4% last year, making it one of the worst-performing multi-strategy funds. D.E. Shaw’s Composite fund, meanwhile, gained 9.6% in 2023. Balyasny’s performance was hit by wrong-way equity bets, while macro and commodity wagers produced gains.
In recent years, the firm has been pushing further into macro investing. As of the end of January, macro bets accounted for about 25% of its invested capital, making it the firm’s second-largest strategy. Sack will report to Steven Goldberg, who leads the macro business which has more than 40 portfolio managers.
Sentiment for multi-strategy funds has come under pressure recently amid concerns over their use of leverage and crowded trades. A Goldman Sachs Group Inc report last month found investor interest in the strategy is waning after peaking in 2023.
Sack departed D.E. Shaw after the firm posted gains of at least 20% in 2022, bucking losses in major stock and bond indexes, and making it one of the best-performing multi-strategy funds that year. During his time at D.E. Shaw, Sack was also a member of its discretionary macro trading unit. — Bloomberg
