Fund launches & closures Hedge Funds

Ex-Ramius analyst starts new funds

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Paul Schulstad, a veteran merger arbitrage analyst, has launched a long/short equity fund and will debut an arbitrage fund next month.

Paul Schulstad, who previously worked as a merger arbitrage analyst at Ramius Capital Group, has formed STO Capital Management, a hedge fund firm in Saddle River, N.J.

He launched STO Capital Opportunity Partners, a long/short equity fund, on November 15 and plans to roll out STO Capital Arbitrage Partners, a merger arbitrage fund, in January 2011.

Schulstad spent two and a half years at Ramius, which as of July 2010 managed $3 billion, and left the firm in early 2009. Before Ramius, Schulstad spent seven years at Milton Arbitrage Partners, also as an analyst, and before that he