CHAPEL HILL, N.C. (HedgeWorld.com)–The recently formed arbitrage shop Silverback Asset Management is planning to open its first two hedge funds to outside investors on August 1.
Silverback, which was formed earlier this year by hedge fund veteran Elliot Bossen after his departure from the Argent Financial Group at the end of the first quarter, has been trading proprietary money in its fledgling arbitrage strategy for the past two months.
The new firm is trading two funds under the same umbrella strategy–the U.S.-based Silverback Partners fund and its master feeder-linked Cayman companion called the Silverback Offshore fund.
Both of the funds are aimed at the institutional market, a target readily made apparent by the US$5 million minimum investment required of qualified investors. The fee structure for both is 1.5% and 20%.
The firm doesn’t think it will have any trouble attracting interest from institutional investors. “Converts and arbitrage is a core segment of the market that institutional investors who seek exposure to alternatives are always going to be drawn to,” Mr. Bossen said.
The Silverback strategy is designed to use a variety of arb strategies, focusing on capital structure arbitrage and converts. Silverback’s trading style exploits opportunities through a variety of credit derivatives.
In addition to Mr. Bossen, Silverback Asset Management’s other key members of the investment team are Simina Farcasiu, previously with Merrill Lynch Pierce Fenner & Smith, and John Burkert.
The firm didn’t comment on how much money it wanted to raise before capping the strategy, but Mr. Bossen said investor inflows would be balanced against opportunities that existed in the market.