Tue, Feb 9, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers May 2013

Profiles - Stone Toro and Varden Pacific talk about their funds

Jeffrey Russo

Stone Toro Asset Management LLC, an asset management firm based in Princeton, New Jersey was formed at the end of 2009 by three ex-Merrill Lynch colleagues, Mike Jarzyna, Jeffrey Russo, and Richard Jenkins. Jarzyna and Russo were also directors at BlackRock, and Russo, the PM, managed more than $14bn in AUM as a Director there.

Their fund, the ST Alpha Event Fund, which was launched in January 2011, is an absolute return fund using a global multi-strategy approach to eventdriven arbitrage. It manages around $146.9m and is up 0.92% YTD (to March), after returning +2.5% in 2012 and +1.18% in 2011. It is also featured in Opalesque's EManagers database.

Jeff Russo actually started trading his strategy while at Bankers Trust in the mid-90s, where he served as portfolio manager of global developed and emerging market index funds with assets over $4bn (Bankers Trust at the time was the third largest index manager in the world, managing around $200bn worth of index related assets).

Russo defines "event" as things that are tangibly happening in the market. "So we like to look at where the world is, as opposed to the way we hope it to be or wish it was," he tells Opalesque.

The ST Alpha Event Fund has four distinct strategies, namely: index events, merger arbitrage, structural changes (or special situations, corporate actions) and relative value pairs.

"That's actually something that I think is a really attractive part of the strategy is the breadth of the index world and how the markets have changed over time," Russo explains. "The markets have become very passive with the emergence of ETFs. As active management on the mutual fund side has decreased in size, possibly due to active managers' long-term inab......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time