Once upon a time, Sutesh Sharma co-founded a little hedge fund called Old Lane Partners. Now, Old Lane didn't make its investors much money, but it did make Sharma and his co-founders very wealthy when, for reasons that seemed clearer at the time than they do today, Citigroup decided it would pay any price to buy Old Lane to one day make Sharma's buddy Vikram Pandit CEO while also denying him the zen garden in the sky he required to be successful.
Sharma went on to run Citi's proprietary trading operations as Old Lane crashed and burned. But in spite of the five whole years that have passed since then, investors are stubbornly refusing to give Sharma the half-billion dollars he wantshas earned for his new hedge fund.
Portman Square Capital LLP, founded by ex-Citigroup Inc. proprietary-trading unit head Sutesh Sharma, opened with less than a fifth of the amount the hedge fund originally sought, said two people with knowledge of the matter.
The firm began trading in May with less than $100 million, compared with the $500 million the firm initially targeted, said the people, who asked not to be identified because the figure hasn’t been made public. The firm scaled back its target in March, people with knowledge of the talks said at the time.