Duncan Hennes, who oversaw the rescue of Long-Term Capital Management while at Bankers Trust and later became chief executive of Soros Fund Management, is returning to the hedge fund market.

His new fixed-income fund is the first hedge fund launch by Promontory Group, a financial and regulatory consultancy business set up in 2000 by Eugene Ludwig, who was in charge of US banking oversight as Comptroller of the Currency under President Bill Clinton.