A founding trader from John Arnold’s flagship energy fund is looking to start his own hedge fund, according to a source close to the situation.
Arnold’s fund, the Centaurus Energy Master Fund is currently in the process of unwinding positions and returning money to investors.
Trader Bill Perkins is said to be starting an energy focused fund specializing in trading natural gas. The fund is expected to raise funds of about $300 to $600 million and be called, “Skylar Capital Management.” The fund is expected to launch on July 1 and will be based in Houston.
Hedge fund managers have been under pressure from increased oversight and regulations and in many cases, reduced volatility. Over the past year, the HFRX Global Hedge Fund Index has returned a negative 7 percent.
On May 2, CNBC first reported that legendary trader John Arnold was retiringfrom the business of trading. In an industry of outsized egos, Arnold’s fund was legendary for its outsized returns. A self-made billionaire, Arnold was also known for signing the so-called “Buffett Pledge,” pledging the bulk of his wealth to philanthropic causes.