Thu, Nov 27, 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. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  2. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  5. Gross: Inflation is required to pay for prior inflation[more]

    Benedicte Gravrand, Opalesque Geneva: As inflation rises, every dollar will buy a smaller percentage of a good. While deflation will mean a decrease in the general price level of goods and services. These two economic conditions are both in the waiting room. The consensus would like the former to