BOSTON (Reuters) – Investment firm PAAMCO Prisma, one of the world’s biggest investors in hedge funds, said on Tuesday that a six-person executive committee will replace the firm’s two co-chief executives who are stepping down on Aug. 1.
Jane Buchan and Girish Reddy, who have run the $30 billion firm since early 2017 when PAAMCO and KKR Prisma merged, will stay on as senior advisors until the end of the year.
Buchan, who co-founded PAAMCO in 2000, plans to launch her own quantitative investment fund early next year and Reddy, who co-founded Prisma in 2004, will retire from the money management business.
“Today we feel the organization is ready to move to the next generation,” Buchan said in a statement about the decision to step aside.
The move comes as hedge fund investing is becoming more difficult. Many pension funds who have traditionally relied on firms like PAAMCO Prisma to create portfolios of hedge funds for them are trying to save money by cutting out these types of middlemen.
And identifying the next superstar hedge fund managers is also becoming tougher as the average fund returned less than 1 percent in the first half of 2018, according to data from Hedge Fund Research.
Eric Wolfe will chair the new executive committee which will have three members who came from PAAMCO and three who came from Prisma. Anne-Gaelle Carlton, Mayer Cherem, Vince Cuticello, Von Hughes, and Paul Roberts will also sit on the committee.
Reporting by Svea Herbst-Bayliss; Editing by Marguerita Choy