Richard Handler of Leucadia to Join Board of Ex-SAC Executive’s New Fund

Richard B. Handler, the chief executive of the Leucadia National Corporation, will join the board of a new hedge fund company run by a former executive of SAC Capital Advisors, according to a regulatory filing on Friday.

The new company, Folger Hill Asset Management L.L.C., was started last week by Solomon Kumin, the former chief operating officer of SAC, and Leucadia, the filing said. Mr. Kumin was part of a recent exodus of high-ranking employees from SAC. The firm pleaded guilty to insider trading charges this year and has since become a $10 billion family office known as Point72 Asset Management that manages the personal fortune of Steven A. Cohen.

Leucadia, a conglomerate that is sometimes called a “baby Berkshire Hathaway” for the mix of its holdings, has committed to invest $400 million with Mr. Kumin’s upstart hedge fund, according to the filing. The investment is conditioned on the hedge fund’s attracting an additional $400 million or more from other investors as well. Leucadia has also agreed to provide the firm with a three-year revolving credit facility of $20 million to pay for its initial expenses.

The high degree of involvement is a big bet by Leucadia on Mr. Kumin’s ability to deliver market-beating returns. Mr. Kumin, who left SAC in January, oversaw business development and recruitment at the giant hedge fund. But he was not a trader — making him a rarity among hedge fund executives who hang their own shingle, DealBook’s Matthew Goldstein reported.

Another former SAC employee who is starting a new hedge fund, Gabriel Plotkin, was a highly successful trader. He named his new firm Melvin Capital L.L.C., after his grandfather.

Mr. Handler took the helm of Leucadia last year after the company acquired the Jefferies Group, the investment bank that he ran. Brian P. Friedman, who was the chairman of the executive committee of Jefferies, and is now Leucadia’s president, is also joining the board of Folger Hill.

Folger Hill is expected to register with the Securities and Exchange Commission as an investment adviser and start an investment partnership with multiple managers, the filing said. Mr. Kumin will be the chief executive as well as a manager. The fund plans to begin investing in the first quarter of next year.