Sat, Aug 23, 2014
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. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added