Thursday, 28 August 2014
Last updated 2 hours ago
Aug 14 2013 | 9:34am ET
The co-founders of the shuttered Diamondback Capital Management are plotting their return to the hedge fund industry—separately.
Lawrence Sapanski and Richard Schimel each plan to launch equity hedge funds. Sapanski's Scoria Capital Partners will utilize Diamondback's long/short equity strategy. Schimel's firm will be called Sterling Ridge Capital Management.
Scoria's will be based in Greenwich, Conn., and is expected to launch its maiden fund in the first quarter of 2014, Absolute Return reports. Schimel's Sterling Ridge will be based in New York.
Sapanski and Schimel closed Diamondback in December, more than two years after it was raided by the Federal Bureau of Investigation as part of an insider-trading probe. Neither Sapanski nor Schimel were ever accused of wrongdoing—former Diamondback portfolio manager Todd Newman was convicted of fraud in December and sentenced to four-and-a-half years in prison—and Diamondback soldiered on even as the three other hedge funds raided closed their doors. But they pulled the plug in the face of another $520 million in redemptions, which cut the firm's assets to $1.45 billion—down from $5.8 billion at the time of the raid.
In addition to Newman, two other former Diamondback employees, portfolio manager Jesse Tortora and portfolio manager Anthony Scolaro, pleaded guilty to insider-trading.
Sapanski and Schimel set Diamondback up in 2005. Both men formerly worked at SAC Capital Advisors, and Schimel is SAC founder Steven Cohen's brother-in-law.
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…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...