D/A Capital Loses Co-Founder, Gains another I-Bank Investor

July 27th, 2009
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DiMaio Ahmad Capital LLC lost its CEO and co-founder last week when Morgan Stanley (NYSE: MS) announced it had hired Jack DiMaio as its new Global Head of Interest Rate, Credit and Currency Trading. Mr. DiMaio co-founded hedge fund manager D/A Capital in April 2005 with Nasser A. Ahmad. As of 3/31/09, their firm managed several fixed income focused hedge funds and products with assets of approximately $4.3 billion. Before founding the firm, the two co-founders held senior positions in Credit Suisse Asset Management’s alternative investments group.

With Mr. DiMaio’s departure, Mr. Ahmad will become D/A Capital’s sole managing partner. As part of his hiring, Morgan Stanley agreed to purchase a minority stake in D/A Capital. According to the press release, Mr. DiMaio will retain a position on the hedge fund’s advisory board. It’s not clear what type of ownership stake he will maintain in the firm.

Since Mr. DiMaio has served in a management role at D/A Capital, it is expected that his departure will have a limited affect on the hedge fund’s investment team, which is led by Mr. Ahmad who has served as the Chief Investment Officer since its inception.

In November 2006, Merrill Lynch, which is now part of Bank of America, agreed to take a passive, minority stake in D/A Capital and committed proprietary capital to the firm’s funds. It is unclear if the Morgan Stanley transaction will alter this agreement.

According to the press release, “Mr. DiMaio, who has more than 20 years experience in the bond and credit markets and previously served as the Head of Fixed Income (North America) at Credit Suisse as well as the Head of Alternative Investments at Credit Suisse Asset Management, will also join Morgan Stanley's Management Committee.”
See Press Release
For Detailed Investor Profiles on these Investors, click below:
DiMaio Ahmad Capital LLC
Related People: Jack DiMaio*; Nasser A. Ahmad
Related Entities: D/A Capital; DiMaio Ahmad Lispenard Street Credit Fund; DiMaio Ahmad Pond View Credit Fund; Merrill Lynch
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Hedge Fund Jobs, Hirings and Firings


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