Portfolio Manager Britney Lam who joined Magellan Capital in May, has left the Dubai-based hedge fund firm just months before its anticipated $700m launch and is no longer based in Dubai, according to a Bloomberg report, citing unnamed sources.

Lam, a 20-year industry veteran, previously worked at Ovata Capital in Singapore, specialising in inter-sector pairs trading among tech and consumer companies in the US and Asia. Earlier this year, she told Bloomberg the fund would focus on equity and credit strategies, using long-short positions and arbitrage opportunities between producers and suppliers.

Magellan, led by Ahmed Omar, has reportedly been recruiting since summer and now employs over 15 investment professionals across public and private investment strategies.

Despite Lam’s departure, the multistrategy fund – one of the largest in the UAE – remains on track for a first-quarter launch with at least three portfolio managers, a spokesperson said. Lam's replacement is set to start in January.

The fund’s scale is notable, as only 5% of hedge funds globally launched with $500m or more this year, per industry tracker Preqin, adding to Dubai’s reputation as a rising hub for hedge funds.

Magellan’s seed capital comes from Hassan El Ali, founder of Zakher Marine International, which he sold to an Adnoc subsidiary two years ago for $1.1bn.

In June, Omar revealed Magellan had allocated over €700m ($735m) to acquire Danish Ship Finance.