- Hedge fund Folger Hill, which was cofounded by Sol Kumin, is merging with Schonfeld Strategic Advisors.
- Most of the firm’s roughly 90-person staff will keep their jobs, a person familiar with the firm said.
- Folger Hill has struggled to perform since it launched in 2015.
Hedge fund Folger Hill Asset Management is merging with Schonfeld Strategic Advisors and returning capital to certain investors in May, according to an investor letter sent Tuesday night that was seen by Business Insider.
Most of the jobs held by Folger Hill’s roughly 90-person staff will be moved over to Schonfeld, an investor in Folger’s Asia business, according to a person familiar with the matter.
All of the people in the firm’s Asia unit, which has about 45 people, will keep their jobs, but some of the firm’s Boston and New York-based staffers will lose their roles, the person said.
“While this decision was difficult for us to make, we felt it was in the best interest of our investors and employees going forward,” cofounder Sol Kumin wrote in the letter.
Staff were informed of the move on Tuesday, people familiar with the matter said.
Kumin, who was previously SAC Capital’s chief operating officer, will become chief strategic officer at Leucadia Asset Management. Leucadia, the parent company of investment bank Jefferies, invested $100 million in to Folger Hill last year, adding to its already $400 million bet. Leucadia and Kumin, who are already equity holders in Folger Hill, are set to receive a revenue share in the new combined business, according to the letter.
Cofounder Todd Rapp’s next role is unclear.
Folger Hill has struggled to perform since its 2015 launch. Client updates show the fund is roughly flat this year, gaining 0.64%, and returned 2.7% last year. In 2016, the fund lost 17.5% after fees, Business Insider previously reported.
As of earlier this year, Folger Hill managed about $930 million, after receiving a $250 million cash infusion from Schonfeld Strategic Advisors into the firm’s Asia strategies, per an earlier client letter seen by Business Insider.
As part of the changes, outside investors beyond Leucadia and Schonfeld will get their money back, according to a person familiar with the matter.
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