Hedge FundALERT

Hedge FundALERT JANUARY 22, 2014 4 HEDGE FUND PERFORMANCE 3 Cyrus Closes Subscription Window 3 Munis On the Menu for Startup 3 CDO Specialist Launches 4th Vehicle 4 Jeffedes Forms Trading Partnership 5 DIscount Offered, With a Catch 5 Mum Fund Opens to Wider Audience 6 Somerset Adds Frontier Fund to Menu 6 Boston Co. Hires Emerging-Market Pro 7 LATEST LAUNCHES THE GRAPEVINE Senior analyst Satish Athavale left KSA Capital this month to become a portfolio manager on Vislum Asset Management's Visium Global Master Fund. At KSA, Athavale worked on an equity fund called KSA MidOcean. He had been on board at the Morristown, N.J., operation since 2004. Visium, a multi-strategy shop led by founder Jacob Gottlieb, runs $5.5 billion through about a half-dozen hedge fund products. Managing director Matt Marady will leave his post as Silver Creek Capital's See GRAPEVINE on Back Page Dubin Taps Deputy to Run New Family Office Glenn Dubin, the legendary co-founder of Highbridge Capital, is establishing a family office to manage his personal fortune. The startup, Dubin & Co., last year took office space at the GM Building, occupy- ing more than a quarter of a floor in Manhattan's most desirable skyscraper. Word is that a Highbridge deputy, Greg Elsner, is leading the effort as head of strategy. Eisner joined Highbridge in 2005 and most recently held the title of managing director and chief operating officer for hedge fund products. He joined Dubin & Co. early last year. It's unclear when the new firm is expected to be fully operational. Dubin is best known for establishing Highbridge, a multi-strategy hedge fund operation, in 1992 with childhood friend Henry Swieca. In 2004, they sold a control- ling stake to J.P. Morgan, and in 2009 the bank bought their remaining interests in the firm. J.P. Morgan reportedly paid $1.3 billion for its initial stake in the business. Highbridge manages $27.5 billion of regulatory assets, including leverage. Swieca See DUBIN on Page 6 Separate-Account Effort Powers Lighthouse Lighthouse Partners' funds of funds generated double-digit returns last year, but its "funds of managed accounts" performed even better. The firm's traditional funds of hedge funds, whose underlying investments are in commingled vehicles, posted 2013 returns ranging from 10.5% for Lighthouse 5 Fund to 14.2% for Lighthouse Credit Opportunities Fund. The flagship Lighthouse Diversified Fund returned 12%. By comparison, the HFRI Fund of Funds Compos- ite Index rose 8.8%. For nearly a decade, the Palm Beach Gardens, Fla., firm also has offered multi- manager products whose underlying stakes are separate accounts, rather than shares in commingled funds — a strategy that clearly bore fruit last year. Four of its seven funds of managed accounts gained 20% or more, led by the Lighthouse Asian Compass Series (up 25.7%) and Lighthouse Healthcare Series (up 25.3%). Lighthouse Global Long/Short Fund returned 20.1%. The only loser in the bunch See LIGHTHOUSE on Page Leucadia Launches Global-Macro Operation Leucadia National's asset-management business, formed last year via the pur- chase of Topwater Capital, is starting a global-macro division. Leucadia, whose other holdings include Jefferles, has tapped an executive at the investment bank, David Zervos, to lead the effort. Zervos is chief investment officer of the new Leucadia division, even as he continues to serve as chief market strate- gist and global head of fixed-income strategies at Jefferies. The global-macro operation is still taking shape, but it appears Zervos team initially will manage institutional assets in separate accounts, then launch com- mingled funds at some point in the future. What's clear is that the investment strat- egy will be driven by Zervos' views of the global economy — suggesting more of a discretionary style than a systematic approach. Investors who want in will have to clear a high minimum-investment threshold See LEMMA on Page 5 EFTA00316696 through complexity Take the journey... Gain the insights of over 200 hedge fund managers representing approximately USD 912 billion of assets under management (AUM). Learn about innovative and practical solutions being undertaken in our global hedge fund survey. The cost of . , compliance I ' ii • , 140 2013 KPMG AYAIAMFA "I , _ / Global Hedge Fund ,7 - --• ' • z• • aime.0.9 ma....xsdtundsArg w ow re For full access to this information, please visit at • It, 2 ". r°, r • 4a -08 EGto 8 gt,t E cg u CA • :L O q 2 4 m N n H:2 RLtl.2 O § 4 pe 9 V I Z; E 9I 12 G ic3 12: dr: g r iM?! ' • 43 e• • kit SZ12 c;i1-1 EFTA00316697 January 22, 2014 Hedge Fund Cyrus Closes Subscription Window Distressed-debt manager Cyrus Capital has "hard closed" its two main hedge funds after investment gains doubled the vehicles assets to $3.3 billion in the past four years. On Jan. 17, Cyrus' board, led by founder Stephen Freldhelm, voted to cut off subscriptions to Cyrus Opportunities Fund 2 and Cyrus Select Opportunities Fund, which account for the lion's share of the firm's assets. Since 2010, performance alone has added $1.7 billion to the combined assets of the two funds, Freidheim noted in a letter to investors last week. During the same period, employees increased their stakes in the vehicles by a total of $150 million, and the firm returned $230 million of capital to investors "with their approval; "We are at an asset size that we believe is within the sweet spot for the current environment, given our strategy; Fre- idheim wrote. "We have found excellent alpha opportunities, yet they have been more limited in size and availability, more specialized in nature, and required rigorous searches and deep, detailed analysis — all of which benefits managers that are nimble, focused and right-sized" The offshore version of Cyrus Opportunities Fund 2 gained 25.6% in 2013, while a U.S.-domiciled version was up 27.1% — just shy of the 32% increase for the S&P 500 Index, but with only 28% net long exposure. In 2010, Cyrus "soft closed" its flagship vehicles, and since then has been very selective in accepting capital. The hard close takes effect at the end of the first quarter. It doesn't affect Cyrus Special Strategies Fund, a $325 million long/short and tail-risk vehicle that has capacity for another $150 million. Cyrus, originally known as Och-Ziff Freidheim, was founded in 1999 by Freidheim, Daniel Och and members of the Ziff fam- ily. In 2005, Freidheim bought out his partners interests and renamed the firm. In advising investors of the board's decision, Freidheim also announced the hiring of three executives: chief financial officer and co-chief operating officer Tom Stamatelos, who previously was a founding partner at Woodbine Capital; London-based portfolio analyst Peter Scott, who joined from the London office of Sankaty Advisors; and senior compliance officer Denman Tavakolian, who most recently worked at Lone Pine Capital. The additions lift the firm's headcount to 36. 4,* Munis On the Menu for Startup A municipal-debt specialist has set up a vehicle focused on that sector — a strategy rarely employed by hedge funds. Working through his Whitehaven Asset Management in New York, Scott Richman started trading the Whitehaven Credit Opportunities Fund on Jan. 2 with a little more than $30 mil- lion. Richman, who formerly headed municipal-bond invest- ments at Grade Asset Management, is serving as chief invest- ment officer. Ile is aided in the investment-selection process by partner Alexander Chilton, previously a Citigroup director who 3 was a portfolio manager on a multi-billion-dollar book of muni holdings owned by the bank. Also on board is chief financial officer Vincent Marchisella, who most recently held the same title at Wesley Capital. Whitehaven employs a relative-value strategy to bid for new and secondary offerings of high-grade municipal debt. The huge market is populated more by retail investors and mutual funds seeking tax-free income, rather than alpha-driven hedge fund managers. But the firm believes it can stand out by iden- tifying pricing inefficiencies that have developed in the wake of the credit crisis. Whitehaven's formula is based on the idea that munici- pal securities now trade more like corporate credit products. Along with traditional munis, the firm is eyeing Build Amer- ica Bonds — a type of taxable debt sold in 2009-2010 under the American Reinvestment and Recovery Act. Those instru- ments are priced at a spread over U.S. Treasurys, as opposed to a specific yield. In addition to municipal debt, Whitehaven uses other prod- ucts to hedge against changes in interest rates and to offset macroeconomic risk. Richman worked at Gracie from 2008 to 2012. Along with investing in munis at the credit-product shop, he had a hand in trading sovereign debt. Previously, he worked at Lehman Brothers. + CDO Specialist Launches 4th Vehicle A fund operator that specializes in buying collateralized debt obligations has raised $45 million via its latest offering. The Dublin manager, Crystal Funds, held a final close this month for BK Opportunities Fund, a closed-end vehicle that will buy CDOs from banks and other financial institutions looking to shed legacy assets. The firm, which began marketing the fund in late 2012, typically targets the subordinate trenches and equity pieces of CDOs. The Cayman Islands-domiciled vehicle has a one-year investment period. After that, the manager could reinvest the capital for perhaps three years before winding down the vehicle. BK Opportunities is the fourth closed-end fund the firm has launched in the past 10 years. For its previous offering, Crystal Opportunities Fund, the manager teamed up with Tolls Advisors of New York. That offering, which dosed with $120 million of equity capital in early 2008, produced an annual return of about 10% before winding down in 2012. An earlier vehicle, Crystal Fund 2, launched in 2006 and has generated an annual return of about 8.5%. Investors in Crystal Fund 2 have recouped their initial investments, but the vehicle is still managing assets. Since 2004, Crystal Funds has raised a total of about $500 million for CDO investments. The firm currently manages about $150 million, including separate accounts. Leading the operation are Olivier Goilan in Dublin and Ran Fridrich and Neml Raphael in Tel Aviv. 4, EFTA00316698 January 22, 2014 Hedge Fund Jefferies Forms Trading Partnership A new alliance is enabling Jefferies to offer trading ser- vices to its prime-brokerage clients. The arrangement entails a partnership under which Jeffer- ies is directing hedge fund managers to Tourmaline Partners, a Stamford, Conn., firm that identifies buyers or sellers of stocks and options on behalf of its customers and then exe- cutes orders by routing them through the appropriate broker- ages. Jefferies and Tourmaline aren't sharing revenues, but are promising to refer clients to each other — a key motivation for the initiative. A small group of Jefferies' clients began trading through Tourmaline this month, three months after the two firms began integrating their computer systems to support the effort. While hedge fund managers working with Jefferies are free to farm out trading to firms other than Tourmaline, the bank is emphasizing the idea that it now can offer them a more seamless experience as they move through the process of executing, clearing and reporting positions. Another part of the pitch: By engaging an outside firm to either work alongside their in-house traders or replace those desks entirely, hedge fund managers can save on staff- ing and operational costs while freeing up their investment professionals to focus on research. Such services also can be valuable to larger managers that want to remain anonymous when moving big blocks of securities. For Jefferies, the trading arrangement complements the securities-lending, clearing and capital-introduction services its New York prime-brokerage team already offers to clients. It also relieves the bank of possible conflicts of interests that can arise for prime brokers whose affiliated trading desks pre- fer not to deal with certain rivals, thanks to relationships that Tourmaline maintains with 200 brokerage firms and 40 dark- pool operators. What's more, the partnership helps ensure that Jefferies' prime-brokerage operations remain fully segregated from any trading functions. Tourmaline is active in the U.S., Europe and Asia. The firm was founded in 2011 by a group of former Greenwich Prime Wading Group staffers: chief operating officer Daniel Di spigna; chief financial officer Jonathan Goldstein; compliance head and senior equity trader Ike Grotf; derivatives-trading chief Aaron Hallman; and Henry Higdon 3d., who heads a London office. Some of the founders also have worked at Williams Trading, which offers trading services to hedge funds. O Lighthouse From Page 1 was Lighthouse Managed Futures Fund, which fell 5.7%. So-called managed-account programs gained currency in the wake of the financial crisis because they typically offer more transparency and better liquidity terms than similar vehicles that invest in commingled funds. 4 In Lighthouse's case, its managed-account vehicles have different mandates than its traditional funds of funds — mak- ing performance comparisons difficult. At the very least, last year's results appear to validate the firm's emphasis on invest- ing via separate accounts. Today, about 85% of Lighthouse's $7.6 billion of assets are in funds of managed accounts. Overall, Lighthouse's assets under management have jumped by about $1 billion in the past 12 months. The gains apparently haven't been enough to satisfy Apollo Global, which owns a stake in parent company HFA Holdings of Syd- ney. Apollo now wants to exit the position, Reuters reported on Jan. 8. Lighthouse, founded in 1999, is led by president and chief investment officer Sean McGould. Hedge Fund Performance Dec. Return elS) 2013 Return ('4 BENCHMARK INDICES S&P 500 2.53 32.39 Russell 2000 1.82 37.00 MSCI EAFE (Europe, Australia, Far East net) 1.50 22.78 Barclays Aggregate Bond -0.57 -2.02 Barclay/Global liedgeSource 1.18 11.16 1,900+ funds (unweighted) CogentHedge 0.92 6.87 3,100+ funds (unweighted) Credit Suisse Hedge Fund Index 1.19 9.73 5,000+ funds (weighted) Eurekahedge Hedge Fund Index 0.91 7.98 2,500+ funds (unweighted) Greenwich Global Hedge Fund Index 0.94 8.99 2,000+ funds (unweighted) HedgeFund Intelligence 1.19 8.60 7,000+ funds (unweighted) Hennessee Hedge Fund Advisory 1.52 12.86 1,000+ funds (unweighted) HMI Hedge Fund Aggregate Average 1.18 9.64 4,900+ funds (unweighted) HFRI Fund Weighted Composite 1.09 9.24 2,000+ funds (weighted) Equity 1.49 14.44 Event-driven 1.16 12.48 Macro 0.60 -0.22 Relative value 0.70 6.98 Fund of funds 1.19 8.79 Emerging markets 0.47 5.60 EFTA00316699 January 22, 2014 Discount Offered, With a Catch Hedge Fund] Bow Street is adding a share class to its sole hedge fund, offering lower fees to investors who are willing to abide by stricter liquidity terms. The event-driven equity shop set out late last year to raise $150 million for the so-called acceleration class, and so far has attracted about $90 million. Half of the fresh capital came from Blackstone, whose Blackstone Strategic Alliance Fund 2 supplied $100 million of seed money for the firm's July 2011 launch. Along with the new contributions, Bow Street allowed existing limited partners to reallocate money from the main share class of its vehide, Bow Street Master Fund. It's unclear if Blackstone exercised that option in addition to making its fresh contribu- tion, given that the investment giant still may be operating under a lockup that would prevent it from moving its seed money. Investors in the new share dass pay fees equal to 1.5% of assets and 15% of profits, compared to a 2% management charge and 20% performance levy for other share classes. In exchange, shareholders must agree to a one-year "soft lockup;' during which withdrawals would be subject to penalties. Black- stone, the anchor investor in the new class, is leaving its added capital untouched for three years. All told, Bow Street now is running about $250 million. As part of its pitch, the New York firm is pointing out that its Bow Street Master Fund produced a 19% gain last year despite maintaining a relatively low net exposure of 35%. Bow Street is led by former Brahman Capital executive Akin Katz and Howard Shainker, formerly of Third Point. Bryan Mur- ray leads fundraising. Altum Fund Opens to Wider Audience Structured-product specialist Altum Capital is marketing a fund that invests solely in Europe. The New York firm, led by Marjorie Hogan, began trading the vehicle last May with $10 million from a single backer — with assets since increasing to $15 million. Until now, however, the fund has been off-limits to other investors. The broader launch of Altum Credit European Fund reflects the manager's increas- ing focus on European collateralized loan obligations. "We find investors expressing a strong bias towards higher European allocations," Hogan wrote to clients last month. "This is consistent with our own internal view of where we see better opportunities going forward. In November, for example, Euro- pean bonds and loans outperformed the U.S. markets by about 2-to-1, and we think this outperformance can continue:' Most of the firm's assets are managed in its flagship Altum Credit Fund, which Hogan launched in 2009 while working at Capstone Investment. Although Hogan has been investing in Europe since 2010, her early focus was on U.S. collateralized loan obligations. In the past few years, however, her emphasis has gradually shifted to European debt instruments, includ- ing the equity pieces of CLOs and commercial and residential mortgage-backed securities. Indeed, those investments now 5 account for more than half the assets of the main fund, which totaled $466 million as of Dec. 1. In 2012, Hogan spun off Altura Credit Fund from Capstone to form Altum Capital. The flagship vehicle returned 15.5% both in 2013 and 2012, following gains of 11.1% in 2011 and 36.5% in 2010 — its first full year of trading. In the third quarter of last year, Altum took a break from fund raising, partly to restructure the European vehicle to accommodate more investors. Both funds — Altum Credit and Altum European Credit — are now accepting fresh capital. When it comes to Europe, Altum Credit invests alongside the European-debt fund. Alturn's capabilities in the European market got a boost late last year, when the firm hired senior analyst Alexi Kra* line from ClUgroup. Prior to Capstone, Hogan spent 17 years at Bear Steams, where she traded mortgage bonds and CDOs using bank capital and helped run the first CDO-trading desk on Wall Street. 4• Leucadia _From Pagel of $25 million and pay fees equal to 2% of assets and 20% of investment gains. Zervos joined Jefferies in 2010 after a stint the year before as a "visiting advisor' at the Federal Reserve Board, where he had earlier worked as a staff economist. He also has managed global-macro portfolios at Brevan Howard Asset Management and UBS O'Connor. In market commentary published by Jefferies last week, Zervos weighed in on the question of how quickly the Fed will wind down its bond-buying program. "While we look ahead to a diminished use of quantitative easing in 2014 and beyond, we should always keep in mind that low short-term rates are still going to be with us for quite a long time," he wrote. "Thus far in this cycle we have seen the good and the bad from QE — and now we are approaching the unknown. But as we enter this more complicated phase of the recovery, rest assured that the Fed remains as committed to a reflationary recovery as ever:" Leucadia is betting on global macro at a difficult time for the strategy, which accounts for some 20% of hedge fund assets globally. The HEM Macro (Total) Index fell 0.2% in 2013, was flat in 2012 and lost 4.2% in 2011. Its last positive showing was in 2010, when it rose 8.1%. Leucadia, a diversified holding company whose businesses range from mining to beef processing, entered the financial- services arena last March with its purchase of Jefferies. Just a few months later, Leucadia bought hedge fund backer Topwater and set up an asset-management unit to house the new busi- ness. Topwater's founders, Bryan Borgia and Davis Taylor, are known for pioneering first-loss seed investments in startup fund operations — deals that require the managers to absorb any losses. As of October, the Topwater team was managing $50 million. The global-macro business represents the asset-manage- ment unit's second division after Topwater. Overseeing the unit is longtime Leucadia executive Marc Fuller. •S EFTA00316700 January 22, 2014 Hedge Fund] u FIT Somerset Adds Frontier Fund to Menu Emerging-market specialist Somerset Capital has launched a long-only equity vehicle that invests in so-called frontier markets — economies that still have a long way to go toward developed-nation status. The London firm, which manages $3.9 billion overall, began trading Somerset Frontier Markets Fund last month with $13 million. As of Dec. 31, its most concentrated positions were in countries usually classified as emerging markets: the Philip- pines (11.8% of total assets), Colombia (9.7%), Peru (8.5%) and Saudi Arabia (5.9%). The next-largest concentrations typify frontier markets: Kazakhstan (5.8%) and Vietnam (5.2%). In terms of sectors, the portfolio is weighted toward investments in financial-services, industrial and telecommunications com- panies. For now, Somerset is marketing the new offering mainly to institutional investors, funds of funds and family offices in the U.S. In its first month of trading, the fund gained 0.8%, com- pared to 0.5% for the MSCI Frontier Emerging Markets Index. The index finished the year with a 5.6% return, following a gain of 21.2% in 2012, a loss o(17.3% in 2011 and gains of 29.1% in 2010 and 25.9% in 2009. In 2008, the index fell by a whopping 55.6%. The fund's portfolio manager is George Birch Reynardson, who began his career at Somerset in 2007, splitting his time EUROPEAN FAMILY OFFICE WINTER SYMPOSIUM 10-11 February 2014 - London Hilton on Park Lane, London, UK The European Family Ortice Winter Symposium will explore the challenges and <mporcunines 2,UK ia led with investing in emerging instketn,alicolitive investments, real estate. global credit & fixed income markets along with numerous other OKI Apex Thin family offge event is the premier event for high net worth indniduals and family offices. This conference will run in conjunction with the Institutional Investors' Coninto. Sponsorship and Exhibiting Opportunities arc Available If }vat are interested in attending. sponsoring, speaking or exhibiting at this event. plow can 212.5:42-98951 or entail in fOSINIKIVAII• net Register To register. visit us online at wwwopalgroup.net or email us at mar ketinggtopalittoup.nci REF CODE: EPO1P17WA1403 ell sae ow twill r 6 between research and operations functions. He later took over frontier-markets research and developed the strategy for the new fund. Somerset runs client money in a half-dozen long-only equity programs that have consistently beaten their emerging-market benchmarks — a point that hasn't been lost on investors. In the first half of last year, the firm took in some $900 million of fresh capital, prompting it to cut off subscriptions to a vehicle that invests in small-cap stocks. One or more additional funds also are closed to new investments at this point. The firm was founded in 2007 by chief executive Edward Robertson, portfolio manager Dominic Johnson and Jacob Rees-Mogg, a Conservative member of the British House of Commons. • Boston Co. Hires Emerging-Market Pro Boston Company, a BNY Mellon unit that manages equity hedge funds and long-only strategies, has added a portfolio manager to handle emerging-market investments. Gaurav Patankar, previously a portfolio manager at Lock- heed Martin Investment, arrived at the Boston operation this month. Word has it he'll initially manage portfolios for existing Boston Company funds, but could launch a vehicle of his own down the road. The firm, which was founded in 1970, had $46.1 billion under management at the end of the third quarter. Most of the assets are in long-only accounts, but it also runs a series of long/short and market-neutral equity vehides, including Long/ Short Opportunistic Equity Fund and TMT Alpha Opportuni- ties Fund. Boston Company's clients include family offices, funds of funds, endowments, foundations and pensions. Patankar spent four years at Lockheed Martin Investment, which manages the defense contractor's pension plan and other retirement assets. Before that, he worked at Millennium Man- agement, where he helped monitor risk associated with par- ticular sectors. • Dubin From Page 1 left the Grn, in 2009 to start a boutique investment shop, Talpton Fund Management of New York As for Dubin, he relinquished his role as Highbridge's chief executive in July, though he is still chairman of the unit. When the bank announced Dubin was giving up his chief executive post, he said he planned to remain at the firm and wasn't retir- ing. Forbes magazine pegged Dubin's net worth at $1.7 billion in September. Dubin is the latest in a growing list of hedge fund-industry elder statesmen entering the family-office stage of their careers. George Soros returned the final $1 billion of outside capital he was managing in 2011, following a similar move by Stanley Druckenmiller, founder of Duquesne Capital and a former lieu- tenant to Soros. Bruce Kovner, founder of Caxton Associates, opened a family office in early 2012. O EFTA00316701 January 22, 2014 Hedge Fund 7 LATEST LAUNCHES Equity at Fund Portfolio managers, Management company Strategy Service providers launch Launch (MIL) Denis Puri and Oliver Keller Hunt Lane Capital, New York - Equity: Long/short (technology, media and telecommunications) — Prime brokers: Morgan Stanley, Jefteries Law firm: Sidley Austin Oct. Hunt Lane Capital Fund Domicile: U.S. 917-688-2713 Auditor: Kaufman Rossin Somerset Frontier Markets George Birch Reynardsoo Equity: Long only Law firm: Proskauer Rose Dec. 2 S13 Fund Domicile: U.S. eSee Page 6 Somerset Capital, London 44-207-259-1300 Auditor: McGladrey Administrator: Northern Trust Whitehaven Credit Scott Fdchman Credit: Relative value Prime broker: Citigroup Jan. S30+ Opportunities Fund Domicile: U.S. & Cayman Islands eSee Page 3 Whitehaven Asset Management, New York Law firms: Seward & Kissel, Maples & Calder Auditor. KPMG 212-257-4930 Administrator. SSW GlobeOp To view all past Latest Launches entries, visit The Subscribers section of HFAlert.com GAIM February 25-26, INVESTOR Save 1% with code xu2930Hra 2014 • Hyatt Regency • Cambridge. MA The institutional investor exchange delivering solutions for the most signiftrant portfolio challenges in hedge fund investing. ceivactm.vmv VP. The Unitedly AI CHOI inititmea Dtbctr. PC. Mc. 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PartneringONV assists you in managing onetoone meetings at GAIM Investor. Tab advantaged dixienots in scheduling and securing meetings with new investors and managers you wouldn't have otherwise met with by viewing &talky.' profiles of all companies. Booking through partneringONr guarantees you a confirmed lime and meeting space. EFTA00316702 January 22, 2014 THE GRAPEVINE ...From Page 1 head of risk management at the end of the month to join illackRock's New York headquarters, presumably in a similar role. McBrady's deputy at Silver Creek, Rut Gong, is assuming his responsibilities at the Seattle fund-of- funds operator. Silver Creek, led by Eric Dillon, has $5.5 billion under manage- ment. Portfolio manager Fritz von Carp left New York equity shop Sage Asset Management this month after 11 years on board:There's no word on von Carp's next move. Sage, which invests mainly in the stocks of industrial and financial companies, runs a vehicle called Sage Opportunity Fund that has about $117 million under management. Sciens Capital has hired a marketing professional. Tamara Fears joined the shop in the past few weeks, splitting time between its New York headquar- ters and its London office. She previ- Hedge Fund 8 ously worked at Aristarc Capital and FrontPoint Partners. Sciens, which offers a mix of hedge fund, private equity and real-asset products, was running $385 million as of yearend 2012. Recruiting firm Execu-Search added two directors to its staff this month. Adam Harwood and Sara Katz both work in the shop's financial-services practice, which conducts searches on behalf of asset managers, banks and brokerages. Harwood focuses on assignments involving sales, trad- ing and research openings across the group's clientele, much as he did at prior employer Canington Fox. Katz recruits portfolio managers, trad- ers and analysts for hedge funds. She most recently headed the hedge fund practice at recruiter Principle Strate- gies Group. Glocap Search's hedge fund practice in New York has hired a recruiter away from Citigroup. Kristin Sartorius started in the past week or two at Glocap, whose 10-person hedge fund staff is led by Anthony Keizner. At Citi, she had TO SUBSCRIBE YESI Sign me up for a one-year subscription to Hedge Fund Alert at a cost of $3,897. I understand I can cancel at any time and receive a full refund for the unused portion of my 4B-issue license. DELIVERY (check one): U Email. U Mail. PAYMENT (check one): U Check enclosed, payable to Hedge Fund Alert. Bill me. U American Express. LI Mastercard. LI Visa. Account Sr Exp. date: Name: Company: Address: City/ST/Zip: Phone: E-mail: MAIL TO: Hedge Fund Alert 5 Marine View Plaza #400 Hoboken NJ 07030-5795 Signature: www.HFAlert.com FAX CALL been serving as an assistant vice presi- dent on an in-house recruiting team since arriving in 2010. Executive-search firm Atlantic Group is setting up a group focused on quantitative professionals. Leading the effort is Gontran de Quillacq, most recently of HSBC. As a member of the bank's New York office from 2007 to 2013, de Quillacq helped develop quantitative products and managed positions in derivatives and equities. He also has worked at Nomura and Lehman Brothers. In addition to leading Atlantic's new quant practice, his duties indude oversight of a group that helps diems gather information on their competitors. Separately, Atlantic Group has added a researcher to its staff. The recruit, Ivy Cong, focuses on tasks tied to recruiting assignments involving marketing and investment professionals at hedge fund firms and private equity shops. She pre- viously was an analyst in the New York office of Cathay Capital, a private equity shop based in Beijing. HEDGE Telephone Mr Howard Kapiloff Ralph R. Ortega James Prado Roberts Andrew Albert Daniel Cowles Thomas J. Ferris T.J. Foderaro Ben Lebowitz Dan Murphy Michelle Lebowitz Evan Grauer Mary E. Romano Josh Albert Joy Renee Selnick Barbara Eannace JoAnn lassie Fax Managing Editor Senior Writer Senior Writer Publisher General Manager Editor Deputy Editor Deputy Editor Deputy Editor Operations Directo. Database Director Advertising Directe Advertising Managk Layout Editor Marketing Director Customer Service www.HFAlert.com E-mail: Hedge Fund Alert ASSN: 1530.7832), Copyright 2014. is published weekly by Harrison Scott Publications Inc. 5 Marine1hew Plan. Suite 400. Hoboken. 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