Diamondback Co-Founder Plans Fourth-Quarter Return

Sep 17 2013 | 2:09pm ET

Richard Schimel, the co-founder of Diamondback Capital Management and SAC Capital Management chief Steven Cohen's brother-in-law, is returning to the hedge fund industry later this year.

Schimel's New York-based Sterling Ridge Capital Management will beat Diamondback co-founder Lawrence Sapanski back to market with the fourth-quarter debut; Sapanski's Scoria Capital Partners is set to debut in the first quarter of next year. The two men shuttered 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 was ever accused of wrongdoing, although former Diamondback portfolio manager Todd Newman was convicted of fraud. Diamondback was the last of the four hedge funds raided in 2010 to survive, although redemptions had cut the fund's assets to $520 million from $5.8 billion.

Schimel, in a letter to potential investors today obtained by Reuters, said he was excited to return to money-management.

"The investment model at Sterling Ridge will focus on a single integrated portfolio that I will manage, similar to what I did in the main portfolio at Diamondback," Schimel wrote.

Prior to founding Diamondback in 2005, Schimel and Sapanski worked at SAC.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

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

July/August 2014 Cover

The time was right

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 ...

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.