Mariner Investment Group LLC, William Michaelcheck’s $4.7 billion multistrategy hedge fund focused on fixed income and credit arbitrage, is starting a pool to invest in new hedge funds, according to a letter to investors.
The firm will hire people to manage capital allocations to startups, spinouts and new Mariner-advised or Mariner supported funds, Chairman and Chief Investment Officer Michaelcheck said in the firm’s first-quarter letter to investors, a copy of which was obtained by Bloomberg News. Mariner received a $500 million investment from the state-owned Alaska Permanent Fund Corp., according to a person familiar with the matter.
More traders are starting their own firms as investment banks shut down their proprietary trading desks to comply with new regulations. Hedge-fund startups increased in the first quarter to 304 funds, the most since 2007, as industrywide capital rose to a record $2.13 trillion, according to Chicago-based Hedge Fund Research Inc.
Peter O’Rourke, Mariner’s general counsel, declined to comment on the letter.
Mariner, based in Harrison, New York, was founded by Michaelcheck, a former Bear Stearns Cos. fixed-income executive. Mariner Partners, its flagship multistrategy fund, climbed 2.4 percent this year through April, the firm said in the letter.
Mariner also plans to open a mortgage fund, the Galton Mortgage Value Fund III, according to the letter. Mariner’s residential mortgage credit team, Galton Capital Management, will be starting the fund to capture investment opportunities in mortgage debt lacking government backing, along with whole loans, single-name credit default swaps, and indexes.
The firm started the Mariner Hyman Beck Global Fund, a fund that follows technical trends, in the first quarter, it said in the letter. Hyman Beck & Co., a quantitative alternative investment management firm founded by Alex Hyman and Carl Beck in 1991, serves as the fund’s trading manager.