Convexity Capital Management, the $10.5 billion hedge fund run by Jack Meyer, said four money managers are leaving the firm.
Scott Carson, a senior money manager, will be joining a new investment firm with Sol Roth, who left Convexity in 2008, the Boston-based fund said in a client letter. He will be joined by money managers John Downing and Frank Prisco. Jason Hotra will be moving to the fixed-income group at Grantham, Mayo, Van Otterloo & Co., according to the letter.
“Convexity has hired some great people,” Mr. Meyer, CEO, said in a telephone interview.
Mr. Meyer, a former money manager for Harvard University's endowment, started trading at Convexity in 2006 with $6 billion, the biggest startup in the hedge fund industry. Last year, investors pulled $3 billion from the firm. Performance over the past year has been “pretty good,” Mr. Meyer said Thursday.
Mr. Meyer had worked at Harvard Management Co. for 15 years before leaving in 2005 with more than 30 employees amid an outcry over pay. Convexity's money management team now has 22 people, it said in its client note.
Mr. Downing confirmed he had left the firm, while Messrs. Carson and Hotra couldn't be immediately reached for comment. Mr. Prisco declined to comment. Convexity said that all holdings overseen by the managers have been reassigned to others on their team.
