New York-based Candlewood Investment Group is off to a running start this year. The hedge fund firm is estimating that its recently-launched Candlewood Structured Credit Fund rose 3.9% in February, bringing its year-to-date gains to 8.5% net.
The firm’s Special Situations Fund LP gained 3.5% in February, bringing its net year-to-date returns to 6.1%, while The Candlewood Special Situations Fund Ltd. was up 4.1% last month (7.1% YTD).
The strong results for Candlewood, which has approximately $900 million in assets under management, come at a time when the average hedge fund returned 1.25%, 1.21% or 0.73%, depending on whether you prefer the Greenwich Global Hedge Fund Index, the HFRI Fund Weighted Composite Index or the HFRX Global Hedge Fund Index. Meanwhile, the Standard & Poor's 500 Index rose more than 3% on the month
In addition to boosting returns, February also saw Candlewood boosting its top ranks. Al De Leo was named head of trading and Gurdev Dillon was tapped as chief financial officer. De Leo was previously a portfolio manager at Marathon Asset Management, while Dillon was chief financial officer at Archer Capital Management.
Candlewood Investment Group, which was formed in 2005 by Michael Lau and David Koenig, last September took over two funds it was managing for Credit Suisse as the bank moved to ready itself for new regulations that limit the amount of capital it is allowed to lend to internally owned hedge funds.