Ex-Goldman Duo’s Fund to Shut After Volatility Bets Go Awry
- Malachite to dissolve funds, citing adverse market conditions
- Firm with $600 million wagered on stock market volatility
This article is for subscribers only.
A hedge fund founded by former Goldman Sachs Group Inc. traders to wager on volatility in stock prices is winding down after the recent market turmoil.
Malachite Capital Management, a New York-based firm that oversees about $600 million, plans to dissolve its funds, the firm said in a statement Tuesday, citing extreme adverse market conditions of recent weeks. The firm, founded by ex-Goldman Sachs traders Jacob Weinig and Joe Aiken, had received margin calls from counterparties including BNP Paribas SA after its trades went awry, people familiar with the matter said.