11/12/2008

Satellite to refocus its investment remit

Satellite Asset Management, the nearly $4bn hedge fund manager formed by veterans of Soros Fund Management, is refocusing its investment remit on credit, distressed and risk arbitrage strategies so the firm can return to its core competencies, according to an HFMWeek source.

As a result of the restructuring, the New York-based firm has eliminated its long/short exposure and terminated approximately 30 employees who worked on that strategy.

Satellite’s revamp comes on the heels of the firm suspending redemptions in its three largest funds. According to reports, Satellite Overseas Fund, Satellite Fund II and Satellite Credit Opportunities were down as much as 35 percent this year. Before the losses, the firm had approximately $7bn under management at the end of last year.

Satellite was founded in 1999 by Lief Rosenblatt, Gabe Nechamkin and Mark Sonnino. The trio worked together at Soros Fund Management from 1988 through early 1999.