|Gertjan Koomen and Didier Matineau have launched Sothic Capital, a new hedge fund manager that invests in the debt of distressed European companies. Mr. Koomen, Sothic Capital’s Chief Investment Officer, previously headed the credit prop trading desk at JPMorgan. Mr. Martineau, the firm’s CEO, had previously spent time at Long Term Capital Management and until this year was a risk specialist and executive at hedge fund administrator GlobeOp. |
According to the Financial Times, GLG Partners and a team of former Merrill Lynch employees have also recently launched hedge funds that invest in distressed debt, although the latter’s MCapital has had little success in winning over investors.
Sothic Capital stands out with a fee structure that modifies the traditional “two and twenty” model to allow for performance fee refunds to clients if investments perform poorly. Half of the “twenty” will go to Sothic immediately, and, contingent upon continued positive performance, the firm will receive the other half the following year.