Partners at hedge fund Capula share £200m in profits – Financial News

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Partners at Capula Investment Management, one of London’s biggest hedge funds, have shared a payout of more than £200m after profits at the fixed income specialist roughly doubled last year.

Revenues at Mayfair-based Capula, which was set up in 2005 by American managing partner and chief investment officer Yan Huo, a former JPMorgan proprietary trading chief, rose to a record £312.5m in the 12 months to the end of March, from £200.5m the previous year, according to the firm’s latest accounts.

Operating profits almost doubled to £212.2m from £108.2m, and Capula’s partners shared £210m of the profits, a huge leap from £101.3m in the previous year, according to the accounts.

The payout was shared between Capula’s 26 partners over the 12 month-period, which include Huo, fellow founder and co-chief executive Masao Asai, other staff and several corporate partners including Japan’s Mitsubishi Corp, an early backer of Capula.

Another long-standing backer, Goldman Sachs’s Petershill investment unit, sold its stake in Capula along with holdings in other hedge fund managers to Affiliated Managers Group in summer last year. Goldman had held a near-20% stake in Capula, while Mitsubishi took a 5% stake in 2008.

Capula had roughly $12.7bn under management when the AMG deal was struck, according to a statement at the time.

In its latest accounts, Capula did not identify which partner earned the biggest cut of the profit share, some £72.2m, more than double the £34.3m received the previous year. Huo has more than 50% of the voting rights at Capula, according to a previous filing.

Capula declined to comment further.

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