U.S. hedge fund partners at startup Livia split prior to they even begin – sources

NEW YORK Sara Tirschwell and Dan Kamensky lined up everything to launch a productive hedge fund, only to understand they could not function together, two individuals familiar with the matter told Reuters.

The pair decided on an amicable departure from their planned joint-venture, New York-based Livia Capital Partners, according to one particular of the men and women. Kamensky will relaunch the fund management organization on Jan. 4 as Marble Ridge Capital, the person mentioned. Marble Ridge will have the same five-individual group, minus Tirschwell, and it will practice the identical “distressed” approach, investing in the stocks and bonds of financially troubled companies.

On paper Livia seemed effectively positioned in a highly competitive market place. Tirschwell and Kamensky had honed their skills as senior distressed investment experts at $ 25 billion Davidson Kempner Capital Management and $ 18 billion Paulson & Co., respectively

Aurora Investment Management, which locations funds in hedge funds, had agreed to give them $ 175 million to support launch, according to one of the people.

And Tirschwell’s position as lead portfolio manager of the firm appeared to position it for investor capital reserved for ladies and minorities, who are drastically underrepresented in the hedge fund market.

Livia, legally launched in February, was set to start trading in December. Aurora has suspended its seed deal, according to the two sources. Aurora declined to comment.

A considerable portion of the consumers who had signed on with Livia are transferring their assets to Marble Ridge, according to the person. The firm will initially be closed to further capital but Kamensky expects to raise yet another $ 200 million in the future.

Tirschwell and Kamensky have known each and every other for years but in no way worked at the exact same organization.

Kamensky was a partner at Paulson who worked on distressed investing from 2009 till February this year. He was component of a team that made winning bankruptcy-associated investments, such as Lehman Brothers Holdings and Residential Capital, according to a third particular person familiar with his background. Just before Paulson, Kamensky worked at Barclays Capital and Lehman Brothers.

Tirschwell’s plans have been unclear and she did not respond to requests for comment. Prior to her decade at Davidson Kempner, she led or helped lead bank loan trading at Imperial Capital and NationsBanc Montgomery, which became Bank of America Securities.

(Reporting by Lawrence Delevingne Editing by Lisa Shumaker)