- Big Hedge Fund News...

Bruce Kovner, chief of multi-billion dollar hedge fund Caxton Associates, is stepping down as CEO of the fund, and handing the reigns to Andrew Law, the current Chief Investment Officer.

Caxton, as many of you know, was one of my former employers, and Bruce's personal support was vital to my success there. I know Andrew Law in passing, but as he was based in London my contact with him was really minimal. My contact with Bruce however, was much more direct. It was he who personally decided to fund my trading strategy (over the politically based objections of his administrative staff) and since I made him money for his trouble, I'm proud to say that his confidence was not misplaced.

I can't say my own time at Caxton was always gratifying. Bruce stepped back from operational control of the firm in 2008, and the company had been shifting into 'Bruce Retirement Mode' for years before that. So the back office ended up dictating how the firm was run far more than the front. Settlement clerks and staffers would call traders and analysts and say "I'm sorry we know you can make a profit on it but you can't trade X because we don't have any way to handle the settlement." This sort of discussion was absolutely unheard of in the hedge fund world, but happened at Caxton all the time.

Some of us "front office" guys used to joke that Caxton was becoming a back office with a small trading operation. For someone like me that was counter-intuitive, and I didn't adjust well to it. Even the simplest of business decisions suddenly took on a political tinge that I had more than a little trouble coping with. I was usually focused on meeting goals not soothing people's feelings about it, so I ended up generating some hard feelings with a number of senior staffers. That sort of thing builds on itself after a while if you aren't careful.

All the same though, there were a number of truly extraordinary and brilliant people at Caxton during my tenure, many of whom I'm still proud to call my friends. Given how intensely political the firm had become, I'm surprised at all the talent they managed to recruit and retain. There were also a number of people who... well... let's just say they would probably do well in government work. (For those of you on the in - "remember the Vega.")

But on the whole and for all it's frustrations, it's hard for me to argue that I didn't benefit greatly from my time at there. It didn't end the way I'd have chosen, but it's hard to say that I'm not the better for it. My career is on a totally different path now, and I have Bruce Kovner to personally thank for that.

Caxton will be a totally different firm now, and I wish Andrew and all the people there continued success. Even those who I might not have seen completely eye to eye with. Life is too short to carry grudges. I hope you all feel the same way.