Monday, 30 May 2016
Last updated 2 days ago
Jan 28 2014 | 1:10am ET
The co-founder of Diamondback Capital Management is bullish on banks at his new hedge fund.
Richard Schimel, who is also SAC Capital Advisors founder Steven Cohen's brother-in-law, told clients of his newly-launched Sterling Ridge Capital Management that certain banks—specifically those doing little fixed-income trading and restructured retail-focused entities—should do well this year, Reuters reports. Schimel did not identify any of his positions by name.
Sterling Ridge debuted in November, less than a year after Schimel and Lawrence Sapanski shuttered Diamondback. Theirs was the last of the four hedge funds raided by the Federal Bureau of Investigation in 2010 as part of an insider-trading investigation to survive.
Neither man was ever accused of wrongdoing, although former Diamondback portfolio manager Todd Newman was later convicted of fraud.
Schimel, whose new firm manages $150 million, is also expecting increased mergers and acquisitions and share buyback activity—and thinks that media and telecommunications stocks are attractive for that play.