Tom Sandell’s $2 billion Sandell Asset Management is preparing to launch two new funds on January 4, the firm’s first single-strategy hedge funds. Castlerigg Merger Arbitrage Fund and the Castlerigg Credit Opportunity Fund, will roll out with approximately $50 million each in partners’ capital.
“Many new investors have an appetite for merger arb,” says Sandell. “A lot of deals were put on hold due to the prolonged recession, but now chief executives are more optimistic.”
Sandell will oversee Castlerigg Merger Arbitrage along with the agship, while Serge Adam will oversee Castlerigg Credit. Castlerigg Investments was up around 10% in 2009 through November. In 2008 it dropped nearly 30%. Since inception in 1998, annualized returns are 10%.
Suzy Kenly
