Citadel Mortgage Vets Plan $250 Million Hedge Fund

Oct 23 2012 | 2:04pm ET

A group of Citadel Investment Group veterans will launch an asset-backed securities hedge fund early next year with about $250 million.

The foursome, led by Kevin Scherer, hope to have that money raised when they launch Continuum Investment Management in January, Bloomberg News reports. The new fund will invest in residential and commercial mortgage-backed securities and other structured-credit opportunities.

"We're seeing world financial institutions delever their balance sheets—that's attracted a significant amount of capital," Scherer told Bloomberg. "Anytime the government extracts themselves from a market, there are significant opportunities."

At New York-based Continuum, Scherer will be joined by Brian McDonald as senior portfolio manager, Jimmy Rizos as head of mortgage technology and Stephen Cameron as head of research and development. McDonald and Rizos held similar posts at Citadel, while Cameron was a quantitative mortgage strategist. Scherer managed the Single Investor Fund at Citadel, where he worked from 2008 until last year.

Prior to joining Citadel, Scherer co-founded and worked at mortgage-arbitrage hedge fund Midway Group.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

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

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

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.