Four founding partners of ex-Citigroup hedge fund, Old Lane, have set up a hedge-fund firm.

Meru Capital, which will be based in New York, has started trading with about $300m in capital, of which over $75m was brought in by former Old Lane CEO, Guru Ramakrishnan.

Morgan Stanley and Credit Suisse are jointly providing prime-brokerage services to Meru Capital. The new hedge fund start-up will trade stocks, currencies, derivatives and debt issued by companies and governments and seeks to move in and out of positions quickly.