William Seibold, a former distressed debt portfolio manager at Soros Fund Management, has launched a new credit hedge fund with backing from Man Group’s fund of funds arm, RMF Investment Management.

Seibold, who left Soros spin-off Camulus Capital in May to found Noroton Capital Management, on July 1 launched the Noroton Event Driven Opportunity Master Fund with $50 million from RMF and another $10 million from friends and family.

The long/short, event-driven fundamental offering invests in corporate credit across the capital structure, according to Bill Price, director of marketing and investor relations. Price said Seibold currently sees more opportunities on the short side and is bearish on sectors such as auto, retail, travel and leisure.

“The market is going to have to go through a cleansing, which is going to take some time,” said Price. “You’re seeing it in the banks and their willingness to take write-offs so it’s going to take them some time to clean out their balance sheets.”

Seibold is currently in talks with institutional investors and hopes to raise between $200 million to $300 million for his offering. The fund charges a 2% management fee and a 20% incentive fee, with a $5 million minimum investment requirement.

Price also mentioned that the firm is looking to open a London office next year.