Hedge fund seeding firm FRM Capital Advisors has made a “significant investment” in Eagle River Asset Management, bringing the latter’s total AUM to over $100 million.
Based in New York, Eagle River is headed by Michael Pascutti, a founding partner at Sandelman Partners where he and the Eagle River team ran a relative value portfolio. Prior to that, Pascutti spent five years with Citadel Investment Group as head of U.S. convertibles. He most recently ran a convertible bond portfolio at PIMCO, and earlier in his career had stints at Tribeca Investment and CS First Boston.
Eagle River, founded in 2010, is an event-driven manager utilizing fundamental credit research to profit from corporate events such as mergers, acquisitions, refinancings, litigation, tenders, and restructurings, including security optionality related to such events. Pascutti works with two former colleagues—Ben Esty and Jim McNeil—along with COO Jonathan Bloom and two other team members.
Clive Peggram, CEO of FCA, said, “Michael is one of the most talented fundamental credit managers in the industry and we are very pleased to support Eagle River. The long-term performance characteristics of event driven strategies are very attractive, and we expect prospects to remain strong for the foreseeable future. Not only is there a healthy level of corporate activity, but the pullback of banks from proprietary trading means there is less competition in event driven trades.”
FRM Capital Advisors is a division of Financial Risk Management, a global fund of hedge funds group managing approximately $9 billion worldwide for institutional and other sophisticated investors.