See GRAPEVINE on Back Page
Jeremy Klaperman this month joined
HBK Capital’s London office as a portfolio
manager focused on European equi-
ties. He most recently worked at Karsch
Capital, a New York stock-trading firm
that he left in May. HBK, a Dallas-based
multi-strategy fund manager, has $13
billion of gross hedge fund assets.
Eric Storch and Dalia Cohen have joined
the marketing team at Oak Hill Advisors.
Both are based in the New York head-
quarters of the $13 billion debt-fund
manager. Storch started work last week
as a managing director, with responsibil-
ities that include business development,
client coverage and marketing activities.
He was previously with Blackstone’s GSO
Capital unit in the customized credit-
strategies group. Cohen joined Oak
Hill on Aug. 1 as a managing director
Investcorp Ramps Up Fund-Seeding Business
From 2005 to 2008, the alternative-investment giant deployed about $450 mil-
lion of seed capital to a variety of hedge fund startups, but has done only a few
deals since the financial crisis. To jumpstart its seeding business, the firm recently
rehired managing director David Cranston to handle marketing. And for the first
time, Investcorp plans to recruit other institutional players to co-invest in its deals.
Already on tap is a seed investment the company expects to finalize in November
or December. Investcorp typically invests $50 million to $100 million in each deal,
in exchange for a cut of the manager’s revenue.
Until now, its seeding business has been funded entirely by proprietary capital.
See INVESTCORP on Page 10
Mariner Preps Infrastructure-Finance Vehicle
Mariner Investment is marketing a fund that would invest in infrastructure loans,
mainly by selling first-loss swaps to project-finance banks.
The vehicle, International Infrastructure Finance Company Fund, has an equity
goal of $200 million to $400 million. Mariner, a fixed-income fund operator with
some $5 billion of regulatory assets, is hoping to complete an initial round of fund
raising and begin investing by yearend.
“It’s generating a lot of interest from big investors,” one source said of the market-
The fund is being set up based on two “major investment themes,” according to
a recent investor note from Mariner founder William Michaelcheck. The first is a
perceived “urgent need” for infrastructure financing, estimated at $71 trillion glob-
ally through 2030. The other is the impact of new risk-based capital requirements
that are making it increasingly costly for banks to carry large loans on their books.
The Mariner fund is designed to help project-finance banks, particularly in
See MARINER on Page 6
Ex-Highbridge Trio Shutting Kingsbrook Fund
Three former Highbridge Capital traders are pulling the plug on their $100 mil-
lion Kingsbrook Partners hedge fund operation.
Ari Storch, Adam Chill and Scott Wallace, who founded New York-based Kings-
brook in 2009, told investors in a Sept. 11 letter that they plan to return all outside
capital by yearend — at which point they’ll focus on managing their own money.
From its inception through the end of August, the Kingsbrook Opportunities
fund posted a cumulative return of 31.1%, though it was down 1% for the first eight
months of this year. The vehicle invests in small- and micro-cap companies, mainly
through preferred shares, convertible bonds and private investments in public equi-
In their letter to investors, Storch, Chill and Wallace cited a dearth of attrac-
tive investment opportunities. “Our belief is predicated on a number of factors that
have led to a structural shift in the markets in which we invest,” they wrote. “Put
See TRIO on Page 2
2 Vora Soars on Distressed-Debt Plays
2 Hilltop Park Opens Long-Bias Fund
3 Firm Backing US Managers of UCITS
3 Basix Founder Throws in the Towel
3 Family Office Advisor Ups Exposure
5 Manager Focusing on Internet Plays
6 MatlinPatterson Fund Bounces Back
6 Profitable Debut for Event-Driven Fund
7 Shop Adds Managed-Account Program
5 INFLOWS/OUTFLOWS BY STRATEGY
11 LATEST LAUNCHES
SEPTEMBER 12, 2012
Vora Soars on Distressed-Debt Plays
It’s shaping up to be a banner year for HG Vora Capital.
The event-driven manager’s HG Vora Special Opportunities
Fund was up 30.4% for the first eight months of the year — its
best showing since its April 2009 inception. By comparison, the
HFRX Event Driven Multi-Strategy Index was up just 2.8% for
the same period, while the S&P 500 Index had gained 13.5%.
The vehicle, led by portfolio manager Parag Vora, is now
well above its high-water mark following a 2.5% loss last year.
It gained 16.1% in 2010 and 25.8% for the last nine months of
2009 — for an average annual return of 20.1% through Aug.
The fund mainly invests in distressed debt tied to compa-
nies in the real estate, lodging, gambling and retail sectors. For
example, it had been the largest investor in Great Wolf Resorts
before buyout shop Apollo Global Management took the com-
pany private in May. Great Wolf was Vora’s most profitable
investment this year, accounting for roughly 20% of the fund’s
Parag Vora, who previously worked at Silver Point Capital
and Goldman Sachs, launched his fund with startup capital
from two major players in the real estate sector: investment
firm Highgate Holdings of Dallas and Taubman Asset Group of
Bloomfield Hills, Mich., a family office connected to the Taub-
man mall empire. Former Silver Point executive Gary Moross
joined Vora as a partner in 2010 and now oversees key invest-
ment functions such as idea generation, research and portfolio
In addition to its recent performance, Vora’s marketing
materials highlight a highly liquid portfolio that supports
monthly redemptions and a hedging strategy that provides sig-
nificant downside protection. To wit: While the S&P 500 has
lost a total of 47.3% during the 13 down months since Vora’s
inception, the fund’s losses totaled just 7.9% for those months.
The firm’s assets, which totaled $120 million at the start of
the year, have shot up to $210 million. Vora has a staff of nine,
including five investment professionals.
Hilltop Park Opens Long-Bias Fund
Equity manager Stanley Shopkorn has begun marketing a
long-biased vehicle that has generated a 20% average annual
return over nearly four years.
Shopkorn’s firm, Hilltop Park Associates, has been manag-
ing the Hilltop Long Opportunity Fund since October 2008 on
behalf of an undisclosed family office. As of this month, the
vehicle is open to other investors.
Shopkorn, a former star portfolio manager at Moore Capital,
founded Hilltop Park in 2008 with chief operating officer Jason
Siegale. The firm’s main vehicle, Hilltop Park Fund, has about
$345 million of regulatory assets, including leverage.
The long-biased fund pursues an opportunistic equity
strategy that doesn’t short stocks but employs a hedging
“overlay” to mitigate downside risk. The investment process
— including both fundamental and technical screens — is
designed to exploit structural changes in the market that have
accompanied the emergence of exchange-traded funds, high-
frequency trading and so-called dark pools, as well as lower
Hilltop conceived of the strategy to accommodate an inves-
tor who wanted access to the firm’s best ideas. Shopkorn never
intended to market the vehicle more broadly. But nearly four
years in, it has crushed the HFRI Equity Hedge (Total) Index,
which has gained an average of 3.4% a year over the same
Because the vehicle has a long bias, Hilltop Park is charging
a 1% management fee and 10% performance fee, instead of the
2-and-20 fee structure more typical of hedge funds.
Shopkorn left Moore in 2002, then ran his own money for
six years before co-founding Hilltop Park.
Trio ... From Page 1
simply, we do not believe that the right risk/reward investment
opportunities currently exist that will enable us to generate
risk-adjusted returns . . . consistent with our objectives.”
The partners ran a similar strategy at Highbridge, where
they started in 2001. At the time of their departure in early
2009, Storch was a senior portfolio manager in charge of the
Highbridge, the hedge fund-management arm of J.P. Mor-
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Firm Backing US Managers of UCITS
A U.K. advisory shop has begun offering seed capital and
logistical support to U.S. fund operators that want to launch
so-called UCITS vehicles.
Rasini Fairway Capital of London recently finalized the
terms of its debut seed deal, raising $15 million for a UCITS
fund that Sierra Global Management of New York plans to start
trading in the fourth quarter. The new vehicle would mirror
the strategy of Sierra Europe Offshore Fund, a European-equity
offering that manages about $240 million.
UCITS — or Undertakings for Collective Investments in
Transferrable Securities — is a tightly regulated European fund
structure that is proving popular with risk-averse investors in
the wake of the financial crisis. A small but growing number of
U.S. fund operators have launched UCITS in an effort to expand
their investor ranks. But many others have been deterred by the
legal, logistical and marketing hurdles involved with managing
a European-domiciled vehicle.
That’s where Rasini’s new seeding business comes in. Ear-
lier this year, the firm set up a Luxembourg-based unit dubbed
RF Capital to advise managers in the States on all aspects of
launching a UCITS fund, including compliance and marketing.
Rasini is raising the seed capital from its existing client base of
European private banks. The firm’s main business is creating
customized funds of funds for those clients, advising on a total
of about $500 million of investments.
“Our objective is to seed more funds in different strategies
and establish a strong UCITS offering, given our knowledge
of the hedge fund universe and understanding of investor
demands in Europe,” said Karim Leguel, Rasini’s chief invest-
With its first deal in the bag, RF Capital is now pitching its
business model to other U.S. managers, with the aim of mak-
ing 3-5 more seed investments over the next couple of years. In
exchange for its backing, Rasini will take a cut of the fee rev-
enue managers earn from their UCITS offerings.
Basix Founder Throws in the Towel
After a decade of mostly positive returns, Basix Capital is
calling it quits.
The San Francisco firm, led by Matthew Spotswood, notified
investors last week it was liquidating its flagship Basix Capital
Fund and would return their capital by the end of the month. It
had about $75 million under management as of May 31.
The long/short equity manager posted gains for nine
straight years through 2010, including a 3% return in 2008
— when the HFRI Equity Hedge (Total) Index fell nearly
27%. The fund recorded its first annual loss in 2011, when it
declined 4.5%, versus an 8.4% drop for the HFRI index. As for
this year, it was roughly flat at the time Spotswood decided to
pull the plug.
What happened? Spotswood is a fundamental stock
picker — an approach that’s suffered at a time when the
market is increasingly influenced by macroeconomic fac-
tors such as Europe’s debt crisis and the responses of central
“Our fundamentally based strategy has become ineffective,”
Spotswood wrote in an investor note distributed Sept. 6.
Another factor: The Basix fund had no gate provisions,
meaning limited partners essentially were free to with-
draw at will. Despite the fund’s positive performance in
2008, for instance, many investors submitted redemp-
tion requests, if for no other reason than other funds had
blocked the exits. The firm’s assets, which had peaked at
about $170 million before the financial crisis, fell to just
A combination of investment gains and fresh capital boosted
assets to $110 million as of August 2011, but then the market
went into a tailspin thanks largely to S&P’s downgrade of U.S.
debt. Once again, investors took advantage of the fund’s liberal
liquidity terms to pull money out of the market.
Before launching in 2001, Spotswood spent seven years at
San Francisco-based EGM Capital as an analyst and portfolio
manager. He hasn’t decided on his next move yet, but wants to
remain in the industry.
Family Office Advisor Ups Exposure
An advisor that oversees $2.2 billion of investments for fam-
ily offices and foundations plans to significantly increase its
hedge fund portfolio.
Legacy Trust Co. currently invests about $66 million, or 3%
of its overall assets, with five managers, including Graham Capi-
tal, Moore Capital and Seminole Capital. But the Houston opera-
tion now wants to boost the allocation to 10%, or about $220
The money would come from Legacy’s long-only portfolio,
which represents about 35% of overall assets. Over the next
year or so, it intends to liquidate a chunk of its long-only invest-
ments and reallocate the capital to hedge funds.
In the meantime, Legacy plans to review its existing hedge
fund investments with an eye toward marginally increasing
its commitments to each manager. Legacy invests only in sin-
gle-manager funds, rather than funds of funds, with a focus
on long/short equity, global-macro and managed-futures
The investment team is led by Steve Sprengnether, who
joined Legacy in 2005 after stints at Goldman Sachs and Mor-
Legacy was founded in 1984 to manage money for a wealthy
Texas family, and later expanded into a full-service trust com-
pany. It also has an office in Wilmington, Del.
September 12, 2012 Hedge Fund ALERT 3
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September 12, 2012 Hedge Fund ALERT 4
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Manager Focusing on Internet Plays
A technology specialist is raising money for a niche vehi-
cle that would invest in companies that stand to profit from
advances in Internet technology.
Tom Wyman, who spent years focusing on Internet technol-
ogy as an analyst at J.P. Morgan and portfolio manager at several
WestCoasthedgefunds,formedInternet Capital ofSanFrancisco
earlier this year with hopes of launching his debut fund in about
two months. He currently is talking to prospective backers about
the HedgeWorld New York 2012 conference on Sept. 19.
While many technology funds target Internet stocks, Wyman
to Internet-related investments. Specifically, the vehicle would trade
both public and private shares of companies poised to benefit from
the expansion of the Internet from the realm of personal computers
to mobile devices such as smart phones, tablets and other applica-
tions. Wyman envisions a concentrated portfolio of 10-15 private
“We believe there is significant investor appetite for Internet
exposure, yet there are no Internet hedge funds and only two
actively managed Internet mutual funds in existence today,”
according to the fund’s marketing materials. “The two mutual
funds invest only in public companies, are long-only and each
have less than $125 million in assets.”
private-shares group at Wedbush Securities. Before that, he worked
as an Internet-technology portfolio manager at hedge fund opera-
tors Husic Capital, San Francisco Capital and Lamoreaux Capital, all
based in the San Francisco Bay area. Earlier in his career, he worked
atJ.P.Morgan,aswellasHambrecht & Quist andMorgan Stanley.
September 12, 2012 Hedge Fund ALERT 5
Inflows/Outflows by Strategy
Hedge funds ($Mil.)
Asia/Pacific long/short equity $57.4
Bear market equity 6.9
China long/short equity -21.9
Convertible arbitrage -385.1
Debt arbitrage 863.7
Distressed securities -152.5
Diversified arbitrage 3,193.8
Emerging markets long/short equity -560.3
Emerging markets long-only equity 25.0
Equity market neutral -566.3
Europe long/short equity -2,162.2
Event driven -3,339.4
Global long/short equity -2,242.9
Global macro -4,573.8
Long/short debt 903.3
Long-only debt -223.9
Long-only equity -217.4
Long-only other -235.4
Merger arbitrage -29.1
Systematic futures 432.5
U.S. long/short equity -2,844.5
U.S. small cap long/short equity -139.4
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Net Flows for Industry ($Bil.)
Source: Morningstar Direct Fund Flows
MatlinPatterson Fund Bounces Back
A mortgage-bond hedge fund that suffered a double-digit
loss in 2011 has come back strong this year.
The vehicle, MP Securitized Credit Fund, was up 11.3%
as of July 31 following seven straight months of gains.
That’s quite a turnaround from an 11.9% loss last year.
The results first were reported by sister publication Asset-
The vehicle, originally called FrontPoint Strategic Credit
Fund, was launched in 2008 under the banner of FrontPoint
Partners, a former Morgan Stanley unit that collapsed last year
after one of its portfolio managers, Chip Skowron, was charged
with insider trading. On Oct. 1, the fund’s seven-person man-
agement team jumped to MatlinPatterson, which rebranded the
The fund invests in both residential and commercial mort-
gage bonds. In a recent letter to investors, portfolio managers
Marc Rosenthal and Noelle Savarese said their residential-loan
book has been on a tear thanks to increasing investor confi-
dence that the U.S. housing market is poised for a rebound.
The portfolio, which gained 0.9% in July, encompasses a mix of
securities backed by prime, alternative-A and subprime cred-
its. The fund’s commercial-MBS book performed even better in
July, posting a 1.2% gain.
shrink dramatically as investors reacted to the news of Skow-
ron’s arrest in April 2011. Skowron, who focused on healthcare
stocks, wasn’t involved with the mortgage-bond vehicle. But
investors withdrew their money en masse from FrontPoint’s
multi-strategy fund, which accounted for much of the capital
in the mortgage-backed securities pool. In November, Skowron
was sentenced to five years in federal prison.
The mortgage-bond fund’s assets peaked in 2010 at
$600 million. It currently has about $140 million under
Profitable Debut for Event-Driven Fund
Former Highbridge Capital portfolio manager Jason Esralew
is off to a strong start in his new home at Ionic Capital.
Since launching Ionic Event Driven Master Fund on Feb. 1,
Esralew’s team has delivered a 14%-plus return through Aug.
31 — far surpassing the 1.4% gain for the HFRX Event Driven
Index during the same period. The S&P 500 Index rose 8.6% in
the February-August stretch.
The fund invests in both the debt and equity of companies,
mostly in North America. As of Aug. 31, the portfolio held 33
Ionic hasn’t aggressively marketed the fund until now —
which explains its modest $21 million of assets under manage-
ment. That could change as investors catch wind of the vehicle’s
early returns, including a hefty one-month gain of 5.9% in
The firm is offering discounted fees on the first $150 mil-
lion of capital: 1.25% of assets and 15% of gains, compared to
the industry-standard 2-and-20 fee structure that will apply to
Esralew and his team ran more than $1 billion of event-
driven investments at Highbridge before leaving in early 2011.
Senior analysts Chris Chan, David Key, Jason Miller and Marcus
Weiss followed Esralew to Ionic.
The New York firm, which has $1.3 billion of net assets, was
founded in 2006 by former Highbridge executives Bart Baum,
Adam Radosti and Daniel Stone.
Mariner ... From Page 1
Europe, manage their regulatory-capital burdens. First-loss
swaps allow a lender to transfer some of the risk of a loan port-
folio to a counterparty, and thus reduce the amount of capi-
tal it needs to hold against that position. “Tightening Basel 3
standards have caused a dramatic shortage in regulatory capi-
tal likely to persist over the next several years,” Michaelcheck
In addition to selling credit protection, the fund will look at
buying loan portfolios from project-finance banks. An execu-
tive in the infrastructure-finance sector said Mariner is among
a number of new players looking to “replace or facilitate bank
lending to infrastructure projects.”
The fund’s fee and liquidity terms are unknown, but it pre-
sumably will be structured more like a private equity fund than
a hedge fund.
Overseeing the effort is Andrew Hohns, who joined Mari-
ner in March from Philadelphia-based Institutional Financial
Markets, formerly known as Cohen & Co. There, he was a
managing director whose responsibilities included structur-
ing securitized products, including collateralized debt obli-
gations. At Mariner, Hohns is chief executive of a new unit
called Mariner Infrastructure Investment. His team is based
in a new Mariner outpost in Philadelphia. The parent firm, a
unit of Tokyo-based Orix Corp., is headquartered in Harrison,
WorkingwithHohnsisexecutivedirectorAaron Barnes, who
previously was a vice president of project finance at renewable-
energy company Tangent Energy. Three more executives are set
to join the team after the fund holds an initial equity close. They
include Robert Gurman, who runs a firm called Gurman Capital
that advises investors in power-generation financing deals.
September 12, 2012 Hedge Fund ALERT 6
You can keep tabs on Wall Streeters who are
setting out on their own by monitoring “Latest
Launches,” which you can find in The Marketplace
section of HFAlert.com. The listing is chock full of
details about recent launches of hedge funds and
funds of funds, as well as information on vehicles
established in the last several years.
Track Past and Present
Shop Adds Managed-Account Program
Fund-of-funds manager Old Greenwich Capital has launched
a managed-account platform that promises investors a high
degree of transparency and control.
The New York firm started investing via the new platform in
with managers that have between $10 million and $100 million
under management. The platform offers investors daily liquidity
The new program will run alongside Old Greenwich’s $200
million core fund, which is largely backed by family offices
and wealthy individuals. The fund of funds is up 4.5% through
August of this year, compared to a 3.49% gain for the HFRI
Fund Weighted Composite Index, and has produced an annual-
ized return of 8.25% since inception. The firm has steered client
capital into vehicles run by Elliott Management, Litespeed Man-
agement, Mason Capital, Sound Point Capital and Third Point,
Old Greenwich was founded in 2005 by Jeffrey Arsenault,
previously a partner at Paradigm Capital. He set up a New York
outpost for the Canadian investment boutique and was respon-
sible for Paradigm’s U.S. broker-dealer operation. Before that,
he spent 13 years in institutional sales at CIBC World Markets,
Gordon Capital and Merrill Lynch.
Arsenault formed the managed-account platform in part-
nership with software firm Liquid Holdings. The New York out-
fit produced a customizable risk-analysis and reporting system
dubbed Green Mountain Analytics, which enables Old Green-
wich clients to run risk analytics on individual managers and
September 12, 2012 Hedge Fund ALERT 7
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Dates Event Location Sponsor Information
Oct. 10-12 Fund Forum USA 2012 Boston ICBI www.informaglobalevents.com
Oct. 18-19 Outlook 2012 New York MFA www.managedfunds.org
Nov. 1-2 Absolute Return Symposium 2012 New York Hedge Fund Intel. www.hedgefundintelligence.com
Jan. 21-24, 2013 GAIM USA 2013 Boca Raton, Fla. IIR www.iirusa.com
Jan. 28-30 Network 2013 Miami MFA www.managedfunds.org
Jan.30-Feb. 1 Miami 2013 Summit Miami AlphaMetrix www.alphametrix.com
Events in US
Dates Event Location Sponsor Information
Sept. 18 Dodd Frank Title VII Changes New York Knowledge Xchange www.fsokx.com
Sept. 18-19 Hedge Fund General Counsel Summit New York ALM www.cvent.com
Sept. 19 HedgeWorld New York 2012 New York HedgeWorld www.hedgeworld.com
Sept. 19 Regulation of Investment Advisors-Ongoing Debate New York CMS www.cmconsortium.com
Sept. 19-21 Insurance Linked Securities Summit New York IQPC www.iqpc.com
Sept 19-22 Market Structure Conference Washington STA www.securitytraders.org
Sept. 20 Hedge Fund Summit New York FINalternatives www.finalalternatives.com
Sept. 20-21 Private Equity Analyst Conference New York Dow Jones peaconference.dowjones.com
Sept. 21 Meet the Managers Forum New York Infovest21 www.infovest21.com
Sept. 24 Introduction to Commodities Market New York FMW www.fmwonline.com
Sept. 24-25 India Investment Forum New York Institutional Investor www.iiforums.com
Sept. 25 Speed Traders Workshop 2012 New York Golden Networking thespeedtradersworkshop.com
Sept. 27 Complex Products Forum New York SIFMA www.sifma.org
Sept. 27 Introduction to Hedge Funds New York FMW www.fmwonline.com
Sept. 28 Morning Investor Seminar New York Infovest 21 www.infovest21.com
Oct. 1 Municipal Bond Summit New York SIFMA www.sifma.org
Oct. 1-2 Value Investing Congress New York Schwartz Tilson www.valueinvestingcongress.com
Oct. 1-2 Hedge Fund Operational Due Diligence Summit New York FRA www.frallc.com
Oct. 1-2 BHA Select Hedge Funds: 2012 Boston Brighton House www.brightonhouseassociates.com
Oct. 1-3 Sub-Advised Funds Forum Philadelphia FRA www.frallc.com
Oct. 2 Aviation Finance Summit 2012 New York Winston Baker www.winstonbaker.com
Oct. 2 Private Equity Roundtable Forum New York Roundtable Forum www.roundtableforum.com
Oct. 3 Think Tank East Coast 2012 New York IR Magazine www.insideinvestorrelations.com
Events Outside US
Dates Event Location Sponsor Information
Sept. 18 Australian Hedge Fund Forum 2012 Sydney AIMA www.aima-australia-forum.com.au
Sept. 18-20 Fund Manager Selection Asia 2012 Hong Kong IIR www.iiribcfinance.com
Sept. 19 Speed Traders Workshop 2012 Ho Chi Minh, Vietnam Golden Networking thespeedtradersworkshop.com
Sept. 19-20 Trading Architecture Europe London WBR www.wbresearch.com
Sept. 19-21 European Investment Roundtable Rome Institutional Investor www.iiforums.com
Sept. 24-27 Super Return Asia 2012 Hong Kong ICBI www.superreturnasia.com
Sept. 25 Canton of Schwyz Relocation Conference Pfaeffikon, Switzerland IIR www.iiribcfinance.com
Sept. 25-26 UCITS V in London 2012 London IBC www.iiribcfinance.com
Sept. 25-26 Fund Manager Selection Zurich Zurich IIR www.informaglobalevents.com
Sept. 25-27 TradeTechFX London WBR www.wbresearch.com
Sept. 27-28 Institutional Investor Fund Workshop West Sussex, U.K. Institutional Investor www.iiforums.com
Oct. 1-3 European Alternative & Institutional Investing Summit Monte Carlo, Monaco Opal www.opalgroup.net
To view the complete conference calendar, visit The Marketplace section of HFAlert.com
City: State: Zip:
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Investcorp ... From Page 1
via a commingled fund. While it has no plans to start a seeding
fund, Investcorp is now looking for partners interested in co-
investing on a deal-by-deal basis.
“This is Investcorp seeding 2.0,” a source said.
The firm currently backs eight hedge funds with a combined
$1.6 billion under management. Prominent among them are
Silverback Asset Management’s flagship fund, which launched
in 2006 and now has $1.2 billion, and structured-product inves-
tor Prosiris Capital, which launched in July 2011 and reached
$300 million on Aug. 1. Prosiris is one of only a handful of seed
deals Investcorp has completed since the financial crisis.
Cranston and a handful of other Investcorp executives
launched the seeding business in 2005. He left in 2010, then
joined North Creek Advisors of Stamford, Conn., which advises
hedge fund startups and helps them raise capital. He returned
to Investcorp at the end of July. Earlier in his career, Cranston
ran derivatives-sales desks at Barclays, J.P. Morgan and Lehman
Investcorp’s seeding arm is headed by Nick Vamvakas. The
firm’s New York hedge fund group manages about $4.3 billion
of seed investments, funds of funds and customized accounts,
much of it on behalf of investors in the Middle East. Invest-
corp’s parent, Investcorp Bank, is based in Bahrain.
September 12, 2012 Hedge Fund ALERT 10
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September 12, 2012 Hedge Fund ALERT 11
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MFA’S FOURTH ANNUAL HEDGE FUND
October 18–19, 2012
The Pierre Hotel
New York, NY
I N S P I R E
E N G A G E
U N I T E
D I S C O V E R
L E A D
Photos from Outlook 2011
E X P L O R E
96191_MFA_Outlook_Ads.indd 5 8/27/12 9:41 AM
Management company Strategy Service providers Launch
Global Internet Fund
See Page 5
Long/short: equity Prime broker: J.P. Morgan
Law firm: Cole-Frieman Mallon
Auditor: Spicer Jefferies
Administrator: Conifer Securities
Hilltop Long Opportunity Fund
See Page 2
Hilltop Park Associates,
(opened to new
investors this month)
Prime brokers: Goldman Sachs
and Credit Suisse
Law firm: Seward & Kissel
Auditor: Rothstein Kass
Administrator: Goldman Sachs
HEDGE FUND ALERT www.HFAlert.com
... From Page 1
September 12, 2012 Hedge Fund ALERT 12
and head of investor relations. She
was previously head of marketing and
client coverage at New York-based JLL
Fund administrator Butterfield Fulcrum
added marketer Richard Lamendola to
its New York staff this week. Lamendola
came from financial-services company
Ameriprise. Butterfield’s New York
office also hired A.R. Caputo as a sales
professional on Sept. 4. Caputo replaced
Stephanie Doane, who left the firm ear-
lier this month. Caputo was formerly a
director at hedge fund services firm S3
Partners, also in New York. Bermuda-
based Butterfield still has an additional
sales slot to fill in New York, as well as
one in London.
Former Highside Capital senior ana-
lyst Alex Nettune is setting up a fund-
management firm. He had been with
Highside since it launched in 2003,
and left the $1.2 billion firm on Aug. 1.
Dallas-based Highside, an equity inves-
tor, is led by Lee Hobson, who previ-
ously worked with Nettune at Maverick
Mary McDonnell and UnBo “Bob” Chung
filled new positions at Chicago consult-
ing firm Simon Compliance this month.
Both hold the title of senior consultant.
McDonnell is working with Simon’s
futures-trading clients. She most
recently ran her own consulting firm,
and before that spent 30 years work-
ing in the field of electronic trading,
including a term as chief executive of
Chicago-based Geneva Trading. Chung
is working with brokerage firms, as well
as investment advisors and alternative-
investment firms. He was previously an
enforcement lawyer at Finra.
Trader James Levey joined $1.3 billion
hedge fund firm Basswood Capital sev-
eral weeks ago. He previously worked
at Paris-based Olympia Capital, which
merged with Kenmar Group in April to
create Kenmar Olympia, a $3.3 billion
operator of funds of hedge funds.
Providence Equity Capital has hired
a chief compliance officer. Alexander
McMillan joined the New York credit
specialist in recent weeks from Loeb
Capital, where he was general counsel.
McMillan reports to Roman Bejger,
chief compliance officer of the firm’s
parent — private equity shop Provi-
dence Equity Partners. The hedge fund
unit had $2.9 billion of regulatory assets
as of June 30.
By October, Corbin Capital will receive
the last installment of a $350 million
investment mandate from Nova Scotia
Health Employees. The New York-based
fund-of-funds manager, which runs $3
billion, won the assignment from the
Bedford, Canada, pension plan early in
the second quarter.
Corgentum Consulting, which reviews
the operations side of hedge funds,
opened an office in San Francisco last
week. The firm, based in Jersey City,
N.J., expects to expand its client base by
capturing more business from invest-
ment consultants, endowments, family
offices and funds of funds. Corgentum
also hopes to conduct more due-dili-
gence reviews of private equity and real
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