Hedge Funds

KLS opens up six-month fund to outsiders.


Wall Street veterans Jeff Kronthal, Harry Lengsfield and John Steinhardt are just beginning to market fixed-income KLS Diversified Master Fund, which they started in August with $230 million, $200 million of it from an unnamed strategic partner and $10 million from each of the three partners. The trio is hoping the 0.83% returns they generated in the firm's first six months through January will be enough to attract more capital.

"The most important thing was to get a track record going," says a KLS spokesman.

Kronthal and Lengsfield are both alums of Merrill Lynch, where they each spent nearly two