Kieran Goodwin, the former head trader at $18.5 billion fund King Street Capital Management LP, plans to start a credit hedge fund in the fourth quarter, according to a person familiar with the matter.
Panning Capital Management LP, Goodwin’s New York-based firm, will begin trading in mid-October with bets on and against securities from loans to distressed assets, said the person, who asked not to be named because the information is private. Goodwin declined to comment.
Goodwin, 42, quit King Street in 2010 after six years with the New York-based hedge fund, where he oversaw its team of 20 traders. He had previously worked at UBS Warburg as a director of proprietary trading, and at Merrill Lynch & Co. and Salomon Brothers.
There were 304 hedge-fund startups in the first quarter, the most in more than four years, according to Hedge Fund Research Inc. About 232 funds liquidated, the most since the first quarter of 2010, the Chicago-based research firm said.
Panning Capital plans to open the fund to investors in November and limit the amount of money it raises to $500 million, the person said.
The firm plans to have an investment team of eight people and has hired Jason Vivas, who previously worked at King Street, as a senior trader. Sean Murdock, who oversaw U.S. credit trading at Royal Bank of Scotland Group Plc, will be a senior credit analyst along with Craig Perry, who shuttered his hedge fund Sabretooth Capital this year.
Bill Kelly, who was a founding partner at funds Talisker Capital Management LP and Archeus Capital Management LLC, will be Panning Capital’s chief operating officer.