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Deer Park Road Management Company Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

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

  • Whether you're thinking about investing in a hedge fund or you're building your very first portfolio, you may want some professional help. Luckily, finding a financial advisor doesn’t have to be hard. In fact, SmartAsset’s free tool matches you with up to three financial advisors in your area in just five minutes. Get started now.
  • Most people invest with a specific goal in mind. Rather than mindlessly investing your money hoping for gains, you should try to project exactly what you need to earn to reach your goals. SmartAsset's investment calculator is a great place to start for this.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research