(Bloomberg) -- A top currency trader at Eisler Capital is getting a second chance to turn a profit at the hedge fund after he was ordered to stop trading when he suffered losses on his roughly $500 million trading book in recent weeks, people familiar with the matter said.

Stuart Oakley, who recently moved to Dubai to lead the hedge fund’s expansion in the Gulf, has been approved to return to trading but only after renegotiating his risk limits, the people said, asking not to be named discussing non-public information. The losses, which occurred in London before Oakley relocated to Dubai in recent weeks, were a percentage in the low single digits, the people said.

For now, Oakley is the sole portfolio manager in Eisler’s Dubai office, the people said. When Eisler began hunting for an office in the Gulf city earlier this year, it was looking for a location that could accommodate about 30 people and aimed to have its staff on the ground by the third quarter of this year, Bloomberg News reported in February.

Oakley was told to stop trading after Sam Wisnia, the hedge fund’s deputy chief investment officer and a key lieutenant of founder Edward Eisler, raised concerns about the losses, according to the people familiar with the matter. A representative for Eisler declined to comment. 

Separately, Eisler has largely pulled back from wagering on emerging-markets interest rates after traders lost money and differed on approach with Wisnia, Bloomberg News reported last month. Some of the traders who departed in recent months had also expected to be able to lose up to 5% of their trading books — a common arrangement among portfolio managers in such positions — but were stopped from trading well before reaching that threshold. 

Dubai Frenzy

With its new outpost in Dubai, Eisler joins the bevy of hedge funds from Millennium Management to Brevan Howard Asset Management opening offices in the Middle East as the region lures firms with its low taxation and convenient time zone, which makes life easier for portfolio managers who have global investments spanning North America to Asia.

Eisler, the former co-head of Goldman Sachs Group Inc.’s global securities unit, founded his eponymous company in 2015 and has recently been transforming it into a multistrategy hedge fund from its roots in macro trading.  

Last year, it opened offices in Jersey, Malta, and West Palm Beach and added 42 people to its more than 60 investment teams that work across fixed income, equity, macro and commodities strategies. Eisler now employs around 300 people globally. 

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