(Bloomberg) -- Eisler Capital, the $4 billion multi-strategy hedge fund, has largely pulled back from wagering on emerging-markets interest rates after traders lost money and differed on approach with a top deputy of founder Edward Eisler. 

Portfolio managers including Ying Zhang, Devvrat Tripathi and Johan Kurtz left in recent months, according to people familiar with the matter, who requested anonymity as the details aren’t public. Sirushe Hewazy, one of the most senior emerging-markets traders at London-based Eisler, remains with the fund but isn’t currently trading, the people said.

Some of the departees disagreed with Deputy Chief Investment Officer Sam Wisnia, who favors so-called quantitative trading that relies on computer models, the people said. Some of them had also expected to be able to lose up to 5% of their trading books — a common arrangement among portfolio managers in such positions — but were stopped from trading well before reaching that threshold, according to the people.

Multi-strategy hedge funds such as Eisler, which have grown to an unprecedented size in recent years, are becoming increasingly ruthless as they seek to impose strict controls on portfolio managers. The emerging-markets traders used borrowed money to amplify their bets and oversaw at least hundreds of millions of dollars between them, the people said. 

A representative for Eisler declined to comment. Wisnia and the traders also didn’t comment.

Traders who seek out profit in emerging markets have been caught in the same uncertainty around the global direction of interest rates that has whipsawed much of Wall Street. Developing-economy currencies hit their lowest against the dollar this year in mid-April as Fed Chair Jerome Powell signaled that rates will likely stay high for longer.

Eisler was down 0.66% in April and is down 0.63% so far this year. It returned 9.8% in 2023.

A former co-head of Goldman Sachs Group Inc.’s global markets unit, Edward Eisler founded his eponymous firm in 2015 as one wagering on macro-economic trends. He has since moved to build a multi-strategy operation betting on everything from stocks to oil along with quantitative trading. 

Eisler is planning to raise up to $1.5 billion of capital from investors this year and hire up to 25 portfolio managers as part of this expansion, the Financial Times reported in February. 

Wisnia joined Eisler in 2018 after leading rates and foreign exchange trading at Deutsche Bank AG. He previously worked alongside Eisler at Goldman Sachs, where his duties included overseeing “all the firm’s analytics and algorithmic businesses,” according to Eisler’s website. 

Read More: Eisler Hires From Deutsche Bank After Buying Its Derivatives

--With assistance from Nishant Kumar.

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