Eisler Capital has lost three of the four partners it appointed just 15 months ago, raising fresh questions about stability at the hedge fund amid challenging market conditions, according to a report by Bloomberg.

The latest departure is Lewis Morton, one of Eisler’s top Portfolio Managers and major revenue generators, who has resigned to join another unnamed fund.

Morton, a basis trader with a background at Morgan Stanley, was said to be running a significant portion of Eisler’s AUM from Jersey and reportedly delivered “hundreds of millions” in profits for the firm in 2022 and 2023.

However, basis trading has become increasingly difficult, as hedge funds flood the strategy and regulators grow concerned about systemic risk. While it remains unclear whether this was a factor in Morton’s departure, Eisler’s muted 3% return in 2024 may have played a role.

Morton’s resignation follows the exits of Adrien Delattre, an equities portfolio manager, and Arun Dhar, the former head of Eisler’s US office, who stepped down last November when Carey Nemeth returned as COO.

Only Massimiliano Pignatelli, an equities portfolio manager in Milan, remains from the group of partners announced last year – an initiative seemingly designed to boost retention.