Updated:
UBS O'Connor
UBS O'Connor is the Swiss bank's multi-strategy hedge fund platform, running merger arbitrage, credit, and volatility strategies from Chicago.
UBS O'Connor
UBS O'Connor launched in 2000 when UBS acquired O'Connor & Associates, a Chicago-based derivatives trading firm founded by Edmund O'Connor in 1978. The unit now operates as UBS's dedicated hedge fund platform, managing proprietary and client capital within the bank's asset management division. It maintains headquarters in Chicago with trading desks in New York, London, Hong Kong, and Singapore. The platform deploys across a deliberately uncorrelated mix of strategies. Merger arbitrage captures deal-spread risk. Convertible bond arbitrage exploits structural mispricing. Volatility strategies trade equity index and single-stock options. Credit long/short takes positions across the capital structure, from distressed debt to performing loans. The funds trade in public equity, fixed income, currencies, and commodities markets globally. The firm does not disclose a single AUM figure, but regulatory filings and industry estimates have historically placed total platform capital in the low double-digit billions. Joseph Azelby, a former Goldman Sachs partner who ran its Global Opportunities group, took over as head of UBS O'Connor in 2018. The platform operates as a distinct entity within UBS Asset Management, with its own risk framework and compensation structure designed to retain portfolio manager talent typically difficult for large banks. The firm runs both commingled hedge fund vehicles and customized managed accounts for institutional clients. Structurally, UBS O'Connor occupies an unusual position — an internal hedge fund inside a systemically important bank. Most large banks divested proprietary trading units after the Volcker Rule. UBS O'Connor survived by restructuring its capital base to manage primarily client funds alongside limited proprietary capital, maintaining the multi-manager platform model while complying with post-crisis regulatory architecture.
General information
Firm type
Asset Manager
Year founded
2000
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Chicago
Corporate office
Chicago, IL, United States
Additional offices
New York, NY · London, UK · Hong Kong · Singapore · Tokyo, Japan · Stamford, CT
Principals
Joseph Azelby
Head of UBS O'Connor
Sector focus
Frequently asked questions
Who runs investment decisions at UBS O'Connor?
Joseph Azelby serves as Head of UBS O'Connor, a role he took on in 2018 (per Pensions & Investments, 2019). He joined from Goldman Sachs, where he was a partner overseeing the Global Opportunities group. Individual portfolio managers run strategy-specific books — merger arbitrage, credit, and volatility each operate as distinct pods within the platform.
How does UBS O'Connor source its deal flow?
The firm sources primarily through public market screens and UBS's global investment bank relationships, particularly in merger arbitrage where deal-flow visibility benefits from UBS's M&A advisory desks. Credit and volatility strategies rely on quantitative screening and broker relationships rather than private origination networks.
Is UBS O'Connor structured as a hedge fund or a bank proprietary desk?
Both historically, but client capital now dominates. After the Volcker Rule restricted bank proprietary trading, UBS O'Connor was restructured to manage predominantly external investor capital through commingled hedge funds and managed accounts. A limited amount of UBS proprietary capital remains alongside client money, but the unit operates with a hedge fund compensation structure rather than bank bonus pools.
What investment strategies does UBS O'Connor run?
The platform is best known for three core strategies: merger arbitrage, convertible bond arbitrage, and equity volatility. It also runs credit long/short and event-driven positions. The merger arbitrage book is the most mature, tracing its lineage back to the original O'Connor & Associates derivatives franchise acquired by UBS in 2000.
How is UBS O'Connor related to UBS Asset Management?
UBS O'Connor sits inside UBS Asset Management as a distinct operating unit with its own investment committee, risk management, and compensation framework. It is not a legally separate entity from UBS, but its trading and personnel functions operate with independence unusual for a bank-owned platform.
Does UBS O'Connor participate in fund commitments or only direct deals?
UBS O'Connor invests directly in liquid securities and derivatives — it does not allocate to external hedge funds. The platform is itself a hedge fund manager. Its strategies trade public equities, bonds, options, and futures rather than making private fund commitments.
Which geographies does UBS O'Connor cover?
The platform trades globally with an emphasis on North America and Western Europe. Merger arbitrage covers announced deals wherever they occur, though regulatory complexity limits participation in some jurisdictions. Credit and volatility strategies are concentrated in the most liquid markets: US, UK, and continental Europe.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
Need institutional-grade insight on family offices?
Altss delivers:
Prefer a guided tour?
We’ll walk you through: