Anchorage Capital Group is launching a new hedge fund that will focus on investments in the crossover credit space. Mike Aglialoro, who recently joined from Scotia Capital (LMW, 5/28), will manage the new fund, which will invest in lower-tier investment grade and higher-tier non investment grade issuers. The fund will invest in bank debt, credit derivatives and bonds, on both a long and short basis.
Aglialoro was previously global head of loan portfolio management at Scotia, responsible for the bank's corporate loan portfolio as a well as a proprietary portfolio of investments in loans, credit derivatives and bonds, according to a source. Part of the job was measuring the return on equity of clients and hedging and selling migrating credits.
Anchorage was launched in July 2003 by Kevin Ulrich and Tony Davis. Ulrich previously ran Goldman's proprietary distressed bank debt desk and distressed bank debt trading. Davis was head of bank debt research at Goldman and was previously co-head of the firm's distressed bond business until fall 2002. The firm was co-founded by Reservoir Capital Group. Ulrich did not return repeated calls.