Hedge Funds

Kellner DiLeo premiers securities lending strategy

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George Kellner, founder and chief executive of the event-driven firm Kellner DiLeo & Co., is carving out his securities lending business as a separate strategy.

Securities lending has historically been an integral part of the merger arbitrage business, and a handful of brand-name firms engage in the practice, including Citadel Investment Group and Paloma Partners. Securities lending operations enhance traditional hedge fund strategies because they provide insight into market supply and demand, particularly with regard to shorting.

KDC's new offering will give investors direct access to the profits gleaned from the business of borrowing stock from one or more