Russekoff's Smith Cove Capital Hires Ex-Perry Distressed Specialist Gulati

Jun 22 2017 | 8:43pm ET

David Russekoff’s new hedge fund Smith Cove Capital has brought former Perry Capital executive Chetan Gulati aboard as the firm begins to build out a London-based investment team.

The two hedge fund veterans worked together at Perry Capital, according to a Reuters article. Russekoff was Perry Capital’s chief investment officer until 2015, while Gulati was a distressed securities specialist and ran Perry’s London office until it closed last year. 

Perry Capital closed in September after its founder, Richard Perry, concluded “the industry and market headwinds against us have been strong, and the timing for success in our positions too unpredictable.” The firm began returning capital to investors the following month, and remains in the process of closing out less liquid positions.

Russekoff, meanwhile, spent 13 years at Perry Capital and was instrumental in the firm’s positioning against the housing market in 2006-2007, a strategy with ultimately earned it an estimated $2 billion. By the time of his departure in 2015, he was chief investment officer. 

He launched Greenwich-based Smith Cove in March 2017 with a reported $100 million in mostly internal capital aimed primarily at distressed situations in energy, sovereign debt, European telecoms and financial companies.

In addition to Gulati, Russekoff has hired former Perry Capital head of trading Bob Carroll, former Monarch Alternative Capital managing principal Roger Schmitz, and former Perella Weinberg Partners executive Victor Consoli. 

Further information about Gulati’s duties and his start date was not immediately available. 

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