- Citadel has made a high-profile hire from macro fund Element Capital.
- Dan Pergola, a principal and head of rates and FX, will join Citadel in 2023, sources said.
- Element struggled in 2021, losing 8.1% through November, according to media reports.
After scorching hot performance in 2021, Citadel has started out the new year with a splashy new hire, poaching a senior exec from Element Capital.
Dan Pergola, a principal at Element and the head of rates and FX, is resigning from Element on the heels of a rare down year for the juggernaut macro fund. Pergola is one of five senior leaders at the firm and had been at the $15 billion hedge fund for a decade.
Pergola is expected to join Citadel as a senior macro portfolio manager at the start of 2023 following his garden leave, and the fund plans to build a team around him, a person familiar with the matter told Insider.
An Element spokesperson confirmed Pergola’s departure in a statement to Insider.
“Dan’s responsibilities are being absorbed by other senior members of the team as he completes his transition out of the firm over the next few months,” the spokesperson said. “We thank Dan for his contributions and wish him the best for the future.”
Pergola joined Element in 2011 from Morgan Stanley, where he worked on the interest rate swaps and options desks, according to his company bio. He initially covered US rates but expanded his coverage to global rates and FX and was promoted to principal in 2018.
The fund run by billionaire Jeffrey Talpins suffered its first loss in 16 years last year. The fund lost 8.1% through November, according to Bloomberg.
Much of that loss came in October when bond market convulsions wreaked havoc on macro hedge funds. That month Element lost about $1 billion, or 6.6%, according to the Financial Times.
Citadel was one of the best performing hedge funds in 2021, besting its multi-strat rivals with a 26.3% return in its flagship fund.