Former Lehman Pres., Trader Plan Hedge Fund

A pair of Lehman Brothers veterans, one the collapsed investment bank’s last president, the other a suspected source of a tell-all book, are reuniting to found their own hedge fund.

Herbert McDade, the former chief operating office who became president of Lehman in its final days, and former trader Alex Kirk plan to set up River Birch Capital. The new hedge fund would focus on distressed debt and other fixed-income assets, with an eye to possibly procuring some of the illiquid assets still weighing down bankrupt Lehman’s books.