Friday, 22 August 2014
Last updated 11 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 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note