(Bloomberg) -- Nat Dean, a partner and senior portfolio manager at Capula Investment Management, is preparing to spin out the hedge fund he currently runs at the investment firm.

The $3.5 billion Capula Tactical Macro fund that he manages is expected to move out during the second half of the year, according to a person with knowledge of the matter. It will operate under a new New York-based entity named West Basin Capital Management, the person said, asking not to be identified because the details are private. 

London-based Capula, which oversees about $30 billion in assets, is supporting the move and expects to retain a commercial interest in the business, the person added.

A spokesman for Capula declined to comment.

Dean, who is based in New York, is the latest among a slew of traders leaving well-established hedge funds to start their own operation. Others include Millennium Management’s senior trader Diego Megia; former Moore Capital Management’s Joeri Jacobs; and, Sean Gambino, who ran a stocks trading strategy at Eisler Capital.

That’s counter to the dominant trend in the industry in which investors, capital and trading talent all gravitate toward multistrategy investment firms that rely on numerous teams of traders to generate steady returns.

Investors pulled more than $100 billion from hedge funds in each of the last two years, according to data compiled by eVestment. Yet many of the largest multistrategy hedge funds from Millennium to Balyasny Asset Management are closed to new money, with Ken Griffin’s Citadel planning to return about $7 billion to clients to help manage its asset base. 

Dean studied mathematics at Yale University and joined Capula in 2017. He specializes in G-10 rates, currency and equity options trading. Previously, he worked at Element Capital Management.

The Capula Tactical fund focuses on developed-markets macro strategy with a rates trading bias. The fund gained 1.35% last month, 3.4% in 2023 and 17.7% the year before, according to an investor document seen by Bloomberg News.

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