Deer Park Road Management Company, LP is a large hedge fund manager located in Steamboat Springs, Colorado. The firm has a management team of just seven financial advisory professionals. However, it boasts more than $4.6 billion in assets under management (AUM). The firm focuses on distressed securities, though it invests in other securities as well.
Not everyone can invest in a hedge fund. If you're thinking about how to invest, it may be a good idea to speak with a local financial advisor. This is especially true if you're not an accredited investor, which are the only kinds of investors that have access to hedge funds.
Deer Park Road Management Company Background
Deer Park Road Management Company was founded in 2003 and has been in business as an SEC-registered firm ever since. Michael Craig-Scheckman, the founder of the firm, currently serves as its chief executive officer and president. The firm is owned and controlled by Craig-Scheckman, Scott Burg and Brad Craig. Altogether, they have over 50 years of investment experience. The firm has just one office and has received a number of hedge fund awards from Barron's in the past.
Deer Park Road Management Company works with both accredited individuals and institutional investors. It currently manages just four pooled investment vehicles, also known as funds.
Deer Park Road Management Company Investment Philosophy
As noted above, Deer Park Road Management Company works primarily with distressed securities to grow its funds. However, the firm doesn't limit itself solely to distressed assets. Distressed investments may include mortgage-backed and asset-backed securities, as well as corporate debt and credit investments. When it comes to investments in this space, advisors at the firm use fundamental analysis to inform their decisions. The firm also invests using derivatives, corporate debt and equities, operating on both a long and short basis.
Deer Park Road Management Company has a very limited number of funds, managing a total of just four. While the firm's investment strategies are opportunistic, it does look to invest in securities that it would be comfortable holding for a long period of time. The advisors may also perform a bottom-up analysis to determine the relative value of investments.
Largest Hedge Funds Managed by Deer Park Road Management Company
STS Master Fund, LTD
- AUM: $3,421,315,119
- Minimum: $3,000,000
- Beneficial Owners: 516
Deer Park 1850 Fund, LP
- AUM: $530,797,518
- Minimum: $0
- Beneficial Owners: 2
Fees at Deer Park Road Management Company
The management fees at Deer Park Road Management Company range from 1% to 2% annually for all funds and accounts. The specific fee will depend on the funds or account that you're invested in. Certain classes of the firm's funds may pay a reduced management fee or no management fee at all in exchange for a higher performance-based fee. Instead of a traditional management fee, the firm has typically taken 60% of the first 4% of appreciated value and 20% of appreciated value afterward. Other performance-based fee structures may be agreed upon, though.
What to Watch Out For
Deer Park Road Management Company has a single regulatory disclosure listed on its Form ADV. This disclosure relates to an issue stemming from the firm's valuation policy, which was in contrast to generally accepted accounting principles (GAAP). This disclosure is attributed to the firm directly, as well as one of its advisory affiliates.
It's important to note that only accredited investors can invest in hedge funds. To be an accredited investor, you must have at least $200,000 of earned income ($300,000 for couples) in each of the past two years, along with an assumption that the same trend will be true for the current year. You can also become an accredited investor if you have at least a $1 million net worth (minus the value of your primary residence). The latter requirement can be met either on your own or together with a spouse.
Becoming a Client of Deer Park Road Management Company
Remember that only accredited investors can become clients of Deer Park Road Management Company. If you fit this criteria, reach out to Deer Park Road Management Company directly. You can do so through the firm's website or by calling over the phone.
All information is accurate as of the writing of this article.
Tips for Investing
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