Hedge Funds

SAC players keep it small for big returns


SAC Capital alumni Chad Loweth, Richard Schimel and Larry Sapanski are putting the finishing touches on their planned diversified long/short hedge fund operation - and have created a novel structure.

Taking a page out of the SAC playbook, the partners are looking to strictly limit their initial assets in order to maximize returns.

Diamondback Capital Management of Stamford will launch with no more than $500 million, but will also charge fairly hefty fees of 2% of assets and 30% of profits for investors who hand over their capital for one year and 2% of assets and 25% of profits