Investcorp Seeds Hedge Fund Launched by Former Ramius Employees

Dec 16 2010 | 10:03am ET

Alternative asset manager Investcorp has provided seed capital to Ballast Capital Management, a long/short equity hedge fund launched by several former Ramius employees.

Terms of the deal were not disclosed, but Investcorp generally invests between $50 million and $100 million.

The eight-member Ballast team includes CIO Robert Kaynor and President Ryan M. O’Sullivan. Kaynor and two other team members—Mason Stark and Joanna Wald—worked together at the multi-billion dollar Ramius hedge fund.

Ballast joins Investcorp’s single-manager platform, which currently has AUM of $1.7 billion and includes Cura Capital Management, Interlachen Capital Group, Silverback Asset Management, Stoneworks Asset Management and White Eagle Partners.

A source close to the firm told FINalternatives Investcorp hopes to add two to three funds to the platform each year. Currently exposed to fixed income relative value, global macro and European event-driven strategies, it is now considering credit strategies.

Ballast’s Kaynor said: “Partnership with Investcorp offers Ballast a unique opportunity to join Investcorp’s well differentiated platform with proven global reach and experience.  We continue to see significant advantages for our strategy as stock correlations break down and alpha generation sets up readily.  We value the opportunity to align ourselves with a well known and stable organization. We look forward to leveraging our relationship with Investcorp to enhance our business growth and capabilities.”

The deal has been struck in a difficult fundraising environment for smaller hedge funds. Investors are looking more to larger funds and funds of funds, typically a source of captial for smaller hedge funds, are facing difficulties of their own.

Investcorp’s hedge fund business has about $4.7 billion in assets under management. In addition to its single manager platform, it offers managed account and fund of funds solutions.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.