- Expects to raise as much as $300 million by February launch
- Received seed funding from Bahrain's Investcorp Bank BSC
Jed Nussbaum, a former partner at $5 billion Redwood Capital Management, is planning to start a credit hedge fund at his new firm, Nut Tree Capital Management.
The Nut Tree Master Fund will trade distressed credit, stressed credit, smaller high-yield value and long-short equities across North America, Nussbaum said in a phone interview. The fund is expected to start trading Feb. 1 with as much as $300 million, and will focus on companies with a combined debt and equity valuation of $250 million to $2 billion, Nussbaum said.
“The primary but certainly not sole focus of Nut Tree will be on both mid-sized capital structures as well as looking for opportunities in smaller tranches of larger capital structures,” he said.
Nussbaum, who is looking to raise money from institutional investors, said he received seed funding from Bahrain’s Investcorp Bank BSC, though he declined to say how much. Investcorp’s seeding platform, which started in December 2004, typically provides emerging managers with between $50 million and $100 million.
Prior to starting New York-based Nut Tree in June, Nussbaum spent 12 years at Redwood. He was a partner from 2010 until his departure in February. His new firm’s moniker stems from Nussbaum’s German surname which translates into English as Nut Tree.