Wednesday, 30 July 2014
Last updated 1 hour ago
Jan 10 2014 | 7:29am ET
As Steve Cohen's SAC Capital ends its operations as a hedge fund, his brother-in-law has raised north of $150 million for a fund of his own.
Richard Schimel, co-founder of the now defunct Diamondback Capital, launched on and offshore versions of his Sterling Ridge Fund last November, according to regulatory filings, less than a year after he closed Diamondback in the wake of the U.S. government’s insider-trading investigation.
While the regulatory filings showed the firm had raised $30 million for the offshore fund and $45 million for the onshore vehicle, a source with knowledge of the firm told FINalternatives the actual total raised was "north of $150 million."
Prashant Kolluri, formerly the CIO of the hedge fund business at Investcorp, is president and COO of Sterling Ridge. Christine Glick, formerly with Scott Roth's Severn River Capital Management (shuttered last year due to a "challenging" investment environment) is Sterling Ridge's CFO and CCO.
But many other staff members are former Diamondback employees, including Dmitry Melnick, Anthony Bechalany, Keith Brenner, Brad Sommer, Ross Schimel, Alex Zivic and Brian Sapanski.
“At Sterling Ridge, I will utilize the best of what I've learned over my 20+ year career of investing and from building a successful business at Diamondback Capital Management," Schimel wrote in a letter to prospective investors in September. "The investment model at Sterling Ridge will focus on a single integrated portfolio that I will manage, similar to what I did within the main portfolio at Diamondback.
"The strategy's objective is to generate attractive absolute returns over a market cycle through investing and actively managing risk in global equity markets with particular focus on liquid stocks. Sterling Ridge seeks to generate 'alpha' through a combination of deep fundamental research combined with dynamic portfolio re-balancing."
Minimum investment for the new fund is $5 million.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…