New York Firm Launches Maiden Credit Hedge Fund

Feb 28 2008 | 1:00am ET

New York-based Deister Capital Management is prepping its maiden hedge fund, a credit-focused offering that it promises will be unique from other offerings in the market.

Founder Hilmar Schaumann, who is looking to exploit opportunities in individual corporate credits via credit default swaps, believes he’s catching the market and investors at the right time.

“This is the best environment for us because investors have gotten burned by long exposures through structured products, and they’re really looking for an alternative,” he said.

The Deister Capital Master Fund’s concentrated short bets will be in spill-off sectors from the recent crisis, while its long book will be very diversified, according to Shaumann, who thinks that the market-neutral fund will stand out among its long-biased peers.

“We have a unique portfolio structure that allows us to generate positive convexity in the portfolio,” Schaumann said. “We can benefit from widening spreads if there’s volatility or a sell-off in the market so we’re different from traditional credit hedge funds because historically they’ve always been long or long-biased.” 

Schaumann plans to launch the fund with an amount that is significant enough to allow it to be a major participant in the market, but declined to specify on the amount. The fund charges 2% management fee and a 20% incentive fee.

Prior to founding Deister Capital last year, Schaumann served as chief investment officer of Primus Financial Products and head of long/short credit trading at Swiss Re Financial Products.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.