Former BlackRock manager David Tovey to lead new hedge fund Covale Capital

David Tovey, formerly a fund manager at BlackRock until 2021, is set to take the helm as Chief Investment Officer of a new hedge fund, Covale Capital. The fund, scheduled to launch in the first quarter of 2024 with bases in London and Zurich, is aiming to accumulate $1 billion in assets under management across multiple funds by the end of 2024, according to a source familiar with the matter.

While Tovey has not provided immediate comments, his LinkedIn profile indicates him as one of the founders of Covale Capital. The fund, established as a limited liability partnership in January of this year, initially plans to concentrate on Swiss equities. Covale Capital aims to launch three funds in 2024, with a trading strategy that broadly mirrors Tovey's approach during his tenure at BlackRock.

The first fund, slated to open on January 15, will be a Swiss equity market neutral fund focusing on trading stocks hedged against broader market swings. Additional funds in the pipeline include a strategy involving long and short positions on stocks and a long-only fund. The fund anticipates expanding its focus to encompass European equities in the future.

Covale Capital's management team includes former BlackRock colleagues of Tovey, with Shane Jackson appointed as the Chief Executive of the hedge fund. Other team members, drawn from BlackRock and other financial institutions, include Martin Kazimir, Shane Jackson, Alistair Ceurvorst, and Martin Fasel.

The fund's planned launch and future appointments remain unconfirmed, with Covale Capital's representative declining to comment on these developments.

(With Reuters inputs.)