Tuesday, 23 September 2014
Last updated 8 hours ago
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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.