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FRM Capital Advisors seeds event-driven hedge fund Eagle River

Wednesday, June 15, 2011
Opalesque Industry Updates - FRM Capital Advisors, the hedge fund seeding division of Financial Risk Management, and Eagle River Asset Management LLC have formed a strategic relationship under which FCA has made a significant investment in Eagle River’s fund. The investment will bring total assets under management at Eagle River to over $100 million.

Eagle River is a New York based hedge fund manager headed by Michael Pascutti. Michael was a founding partner at Sandelman Partners, where he and the Eagle River portfolio team ran a relative value portfolio. Prior to that, Michael spent five years with Citadel Investment Group, where he served as Head of U.S. Convertibles. He most recently ran a convertible bond portfolio at PIMCO, and earlier in his career was a Senior Portfolio Manager at Tribeca Investment and as a Portfolio Manager at CS First Boston. Michael has a BS from MIT and a PhD in Economics from Harvard. While at Harvard, he was a teaching fellow for corporate finance, statistics, money and banking and quantitative finance.

Eagle River is an event driven manager utilising fundamental credit research to profit from corporate events such as mergers, acquisitions, refinancings, litigation, tenders, and restructurings, including security optionality related to such events. The firm was founded in October 2010 and sees Pascutti re-united with two of his former colleagues Ben Esty and Jim McNeil. They are joined by Jonathan Bloom as COO and two further team members. The firm began managing external capital in May 2011.

Clive Peggram, CEO of FCA, stated, “Michael is one of the most talented fundamental credit managers in the industry and we are very pleased to support Eagle River. The long-term performance characteristics of event driven strategies are very attractive, and we expect prospects to remain strong for the foreseeable future. Not only is there a healthy level of corporate activity, but the pullback of banks from proprietary trading means there is less competition in event driven trades.”

Michael Pascutti, Managing Member and CIO of Eagle River, stated: “Our focus on the fixed income side of the corporate balance sheet sets us apart from other event driven managers. We believe our expertise in deciphering complex indentures and covenants allows us to identify and exploit clauses that other investors fail to catch. Our partnership with FCA provides a stable base of investment capital to employ our strategy and continue to build our infrastructure.”

FRM Capital Advisors:
FRM Capital Advisors is a division of Financial Risk Management (FRM), a global fund of hedge funds group managing approximately $9 billion worldwide for institutional and other sophisticated investors. FCA manages a seeding fund which makes strategic investments in emerging alternative investment managers. Additional information on FCA can be found at www.frmcapitaladvisors.com.

- FG

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