NEW YORK (HedgeWorld.com)–Risk Economics Limited Inc., a firm founded by former Clinton Group managing director of structured products, David Mordecai, entered into an advisory relationship with S3 Asset Management, which provides outsourced portfolio financing services to hedge funds.
Mr. Mordecai, a specialist in structured credit arbitrage and asset-liability management, is to help S3 develop a broader range of financing programs, according to a press release.
He said, in the statement, that the performance of hedge funds is highly dependent on the stability of their balance sheet and that both empirical and theoretical research suggest that the trading activities of hedge funds are often adversely affected by constraints related to balance sheet management.
S3 Managing Partner Bob Sloan said S3 looks forward to expanding the scope of its services. The firm, formed in 2003, manages hedge funds’ relationships with their prime brokers with the goal of reducing brokerage costs. It recently hired Kevin Mirabile, previously managing director at Barclays Capital (see Previous HedgeWorld Story).
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