FRM Capital Advisors (FCA) has recently announced strategic investments in JD Capital Management and West Spring Advisors LP. FCA, which provides seed capital to and partners strategically with alternative investment firms, is a division of global fund of funds group Financial Risk Management (FRM).
JD Capital Management is Greenwich, CT-based hedge fund manager that was founded in 2001 by CEO J. David Rogers. In June 2008, the firm launched its Tempo Volatility Fund LLC, which focuses on Rogers’ area of expertise, volatility trading. Following FCA’s investment, the firm’s volatility strategies will manage approximately $160 million.
In a press release, Rogers commented “This new investment and relationship with FCA will allow JD Capital to build a strong, long-term business based on our successful eight year track record in volatility trading. FCA’s involvement provides the assets required to manage the strategy effectively and the investment is a sign of institutional interest in volatility strategies. We believe this relationship will enable us to attract further assets from institutional investors.” In January of this year, JD Capital closed down its Tempo Master Fund. According to the New York Times’ DealBook, the billion dollar fund had reportedly lost 40% last year in the financial crisis.
WestSpring Advisors is a New York-based credit focused manager that was founded in May of 2009 by Ralph Nacey and Eric Phillipps. In July FCA announced a $60 million investment in West Spring’s first fund which will launch in September. Clive Peggram, CEO of FCA commented that the West Spring team has an understanding of credit valuation and experience in exploiting market inefficiencies that few others have and he expects West Spring “to continue to deliver impressive returns.” Nacey, Managing Partner at West Spring said that he believes FCA as an investor was a good choice because investment team supports and understands West Spring’s approach.
Nacey and Phillipps have worked together since 2002, most recently as Chief Investment Officer and Portfolio Manager / Lead Trader respectively at Brigadier Capital Management. Prior to Brigadier, Mr. Nacey worked on Merrill Lynch’s North American derivatives structuring desk, while Mr. Phillipps was the Lead Trader in Merrill Lynch’s Credit Derivatives division.
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