Daniel Donovan and Richard Grindon have left West End Capital Management, a Bermuda-based fixed income arbitrage hedge fund backed by Warren Buffett. The duo is understood to be setting up their own company to manage G7 fixed income arbitrage and take relative value investments just a year after joining West End Capital.

Mark Byrne, former head of fixed income arbitrage at Credit Suisse First Boston, set up West End Capital several years ago. In October 1998, Buffett, best known for investing in undervalued companies, invested $270m (€294m) in the firm, accounting for some 90% of the assets raised.