Balyasny Asset Management
| Company type | Private |
|---|---|
| Industry | Investment management |
| Founded | 2001 |
| Founder | Dmitry Balyasny, Scott Schroeder, Taylor O'Malley |
| Headquarters | Chicago , United States |
Area served | United States, Canada, United Kingdom, Asia, Dubai |
Key people | Dmitry Balyasny (founder) |
| Products | Long/short equity strategies, private startup investments, equities division (Corbets Capital), commodities and macroeconomic strategies |
Number of employees | 1100 (2022) |
Balyasny Asset Management is a U.S.-based investment management company headquartered in Chicago, with additional offices located in Canada, London, Asia, and Dubai.
Background
Established in 2001 by Dmitry Balyasny, Scott Schroeder, and Taylor O'Malley, the firm originally concentrated on long/short equity strategies, which represented 70% of its risk exposure as of 2020. Over its initial 16 years, Balyasny consistently achieved an annualized return of 12% while maintaining limited losses.
The year 2018 proved challenging for the firm as it experienced substantial losses that reduced its assets under management from $12 billion to $6 billion due to investor redemptions. Dmitry Balyasny issued a frank internal message emphasizing the need for swift action and transformation; this communication later became public and shed light on internal cultural struggles. In response, the company reduced its workforce by approximately 20%. These setbacks were largely attributed to an overly cautious approach amid a tough market environment for long/short equity methods.
Following these difficulties, Balyasny overhauled its risk management framework, increased its staffing levels, and shifted its focus toward institutional clients rather than high-net-worth individuals. By 2019, the firm had returned to profitability.
In February 2022, Balyasny expanded into private startup investments, joining peers such as Tiger Global Management and Coatue Management in this space. The subsequent month saw the launch of Corbets Capital, a new equities division headquartered in New York and Greenwich.
By May 2022, the firm's assets under management reached $15.7 billion, supported by a workforce of 1,100 employees including 470 investment professionals. As of August 2023, assets under management had grown to $21 billion.
In 2023, Balyasny inaugurated an office in Dubai and extended investor capital lock-up periods to a minimum of two years to improve stability.
The company has actively embraced technological advancements; in June 2023 it implemented a proprietary ChatGPT-based tool internally and was developing an AI platform functioning as a senior analyst by January 2024.
By December 2023, more than half of Balyasny’s managed assets were allocated across early-stage investments, commodities, and macroeconomic strategies. Leadership expansion continued with new partner appointments, bringing the total number of partners to 23 as of March 2024.
Insider trading
In November 2009, Balyasny Asset Management launched an internal inquiry concerning a former analyst suspected of transmitting insider information about EMC Corporation to a hedge fund manager connected to the Galleon Group investigation. The firm assured investors that no wrongdoing was identified, closed the satellite office involved, and dismissed the employee in question. In 2010, Balyasny became part of a broader governmental probe into insider trading related to the Galleon case.
Mark Adams, an analyst at Balyasny, was suspected of providing confidential information about EMC Corporation to Steven Fortuna, a money manager who later pled guilty in connection with the Galleon investigation.