Hedge Funds

Ex-Goldman, Redwood traders map out event-driven vehicle


Alums from Goldman Sachs and Redwood Capital Management have joined to form KnightHead Capital Management, an event-driven firm expected to launch its first fund on May 1. Citadel Alternative Asset Management is named as the fund's anchor investor.

Ara Cohen, a former principal and partner of $2.8 billion Redwood Capital Management, and Tom Wagner, former head of distressed-debt trading at Goldman Sachs, are aiming to begin with $750 million to $1 billion in assets. The new fund will focus on distressed debt, high-yield bonds and leveraged loans.

Cohen joined Redwood, of Englewood Cliffs, N.J., as a principal in 2001 -