Coast Asset Management Makes Ownership Changes To Fund

Sep 14 2006 | 12:00am ET

Coast Asset Management is making changes to the ownership structure of its $240 million Coast Special Situations Fund, which the firm launched in May of 2003.

According to a source close to the firm, under the original agreement, Brian Selmo, manager of the fund, was seeded by Coast, and now that his fund has performed well and has a track record, both Selmo and the firm felt the time was right to revisit the agreement.

“It is a simple equity transfer. Now Coast will become an equity owner,” said the source, who spoke on condition of anonymity. “The changes are that the economics are more focused toward Brian.”

Coast Special Situations is up 5% this year through July, and has seen gains of almost 18% since inception.

The strategy of the fund and all of its back office support and marketing resources, as well as the location of Selmo’s offices in Coast’s headquarters, will remain unchanged, and the assets of the fund will be transferred to a new vehicle, the Eagle Lake Special Situations Fund, on Oct. 1.

Coast Asset Management has various funds, including single-strategy hedge funds in the fixed-income arbitrage space, fund-of-hedge funds that don’t invest in the firm’s single-strategy funds, and other structured financed vehicles.
In total the Calif.-based firm has $7 billion in assets under management.

Before joining Coast, Selmo was with the New York-based firm Third Avenue Funds.


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note