The co-founder of the now-defunct hedge fund firm Diamondback Capital Management is set to launch a new firm later this year.
Reuters reported that Richard Schimel’s new hedge fund firm, Sterling Ridge, will focus on a single integrated portfolio.
Schimel and Lawrence Sapanski, the other co-founder of Diamondback, told investors in December that the firm will close after receiving about $520 million in redemption requests that month.
eVestment reported in 2011 that Diamondback’s AuM fell to $1.5 billion from $5.8 billion in November 2010 after its offices were searched by the FBI after accusations of insider trading. The firm agreed to pay more than $9 million last year to resolve a Securities and Exchange Commission lawsuit over trades made in 2008 and 2009 by former portfolio manager Todd Newman and Jesse Tortora, a former analyst who worked with Newman.