A little-known New York hedge fund run by a former Yale University math whiz has been buying tens of billions of dollars of U.S. Treasury debt at recent auctions, drawing attention from the Treasury Department and Wall Street.
Element Capital Management LLC, led by trader Jeffrey Talpins, has been the largest purchaser in dozens of government-bond auctions over the past 10 months, people familiar with the matter said. The buying is part of an apparent effort by the fund to use borrowed money to exploit small inefficiencies in the world’s most liquid securities market, a strategy that is delivering sizable profits, said people close to the matter.
Mr. Talpins is an intense and reserved trader formerly at Citigroup Inc.
and Goldman Sachs Group Inc.
He is known for a tenacious style that can grate on rivals and once tested the patience of former Federal Reserve Chairman Ben Bernanke.
An expanded version of this report appears on WSJ.com
View more information: https://www.marketwatch.com/story/obscure-hedge-fund-raises-eyebrows-as-it-scoops-up-treasurys-2015-09-08