Wed, Feb 22, 2017
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. People - Kuwait wealth fund head Al Saad said to step down after 14 years[more]

    From Bloomberg.com: Kuwait Investment Authority is set to name Farouk Bastaki as managing director, replacing Bader Al Saad who ran the world's fifth-largest sovereign wealth fund for 14 years, a person familiar with the matter said. The KIA, as the fund is known, is finalizing the appointment, said

  2. Manager Profile - Eddie Lampert: a painful entanglement with Sears[more]

    From Moneyweek.com: "In the long run we are all dead." Lex in the Financial Times reached for the famous quote from John Maynard Keynes in January when, after a long and unforgiving decline, the clock finally appeared to be running out on Sears, the iconic US department store group. Yet the group's

  3. Investing - Hedge funds quit Aberdeen shorts as shares begin to recover, Hedge funds' next big short: U.S. malls, O'Connor fund owns 9.5% of Protalix Biotherapeutics, U.S. hedge fund takes position in Macau hotel The 13[more]

    Hedge funds quit Aberdeen shorts as shares begin to recover From Investmentweek.co.uk: The last two hedge funds to short Aberdeen Asset Management have removed their positions, as the fund group's shares begin to show signs of recovery after a difficult few years. According to the Financ

  4. Latin America, high yields and Asia Pacific strategies dominate hedge fund returns in January[more]

    Komfie Manalo, Opalesque Asia: Latin America (+7.04%), high yield (5.63%), and Asia-Pacific (+5.06%) strategies dominated hedge fund performance in January, data provider Hennesee Fund Research said. The bottom three strategies for the mont

  5. Investing - Hedge funds loading up on this dividend stock, The biggest hedge funds have been piling into bank stocks[more]

    Hedge funds loading up on this dividend stock From Incomeinvestors.com: Hedge funds are backing up the truck on Cameco Corp stock. Billionaire Jim Simons owns 389,000 shares. Other Wall Street titans - including Ray Dalio, Ken Griffin, and Chuck Royce - have been quietly building positio