Tue, Sep 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Varden Pacific hires MCAM Group to raise funds

Thursday, May 02, 2013
Opalesque Industry Update - Varden Pacific, the San Francisco-based structured credit hedge fund manager launched in late 2010 by a group of senior Wall Street veterans from Morgan Stanley, Credit Suisse and Barclays Capital, announced that it has selected alternative assets placement agent MCAM Group to raise capital internationally for its flagship Varden Pacific Opportunity Partners fund.

Varden Pacific currently manages over $250 million USD and for the full-year 2012 the flagship Varden Pacific Opportunity strategy returned +29.1% net of fees. The firm was set-up by Shawn Stoval, (former Head of Morgan Stanley’s North American Structured Credit Client Trading Group), Dennis Lin (former Global Head of USD Interest Rate Swap Trading at Credit Suisse) and Brad Scelfo (a former Senior Director within the structured and derivative-based product groups at Credit Suisse and Barclays Capital). Since inception Varden Pacific’s sole focus has been dedicated to capitalizing on international credit opportunities and residual dislocations within the structured credit markets, and specifically within the corporate-backed structured credit space.

Last year, the flagship Varden Pacific Opportunity Fund delivered a net return to investors of +29.1% and year-to-date through April the strategy is up an estimated +3.4% net of fees.

The firm was founded by a group of seasoned Wall Street professionals with deep, long-running expertise in structured and derivative-based assets. Varden Pacific manages assets in hedge fund and separately managed account structures, and is registered with the SEC.

According to Varden Pacific’s COO and co-founder Dennis Lin, the global market for corporate-backed structured credit not only has lower competition, but also has identifiable structural characteristics that make it notably more attractive than the broader credit space.

“Regulatory catalysts, changes in rating agency methodology and new mark-to-market rules are pressuring holders to sell these assets for non-economic reasons. With few product experts globally and significant barriers to entry, a material supply/demand imbalance has occurred. We look to utilize our product and industry expertise to identify these "orphaned" assets, in turn providing our investors attractive returns on a risk-adjusted basis." said Lin.

“Varden Pacific focus is on purchasing highly structured/customized structured credit assets that are fundamentally sound, yet trade cheap relative to the risk inherent in the structure and collateral. This opportunistic approach to investing, capitalizing on non-economic market dislocations that have resulted from the events of the last five years, allows us to target double digit net returns utilizing little financial leverage and with light correlation to equities, bond and interest rate markets.” stated Varden Pacific co-founder and Chief Investment Officer Shawn Stoval.

Lars Bjoergerd, Managing Director, MCAM Group commented, “We are currently seeing significant demand among international investors for non-correlated strategies such as structured credit. There are only a handful of teams globally with an as proven, deep expertise and success in investing in the corporate-backed structured credit space as Varden Pacific, and we are exceptionally pleased to be working with Shawn and the rest of the team in growing their international asset base by raising capital for the strategy from allocators in Europe, Asia and the Middle East.”

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  5. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco