Hedge Funds

Viathon forms new credit vehicle


Fund follows similar strategy to defunct Viathon Master Fund.

Viathon Capital Management of Summit, N.J., has launched a new long/short credit strategy with $50 million. The fund follows a strategy similar to Viathon Master Fund, which the firm shut down in March after fund assets were frozen in the Lehman Brothers bankruptcy.

The new vehicle, called Whitewater Master Fund, invests in on-the-run, high-yield and high-grade corporate names chosen through an investment process based on deep fundamental research with a technical overlay.

At the moment the fund is market neutral – its 25 positions are roughly divided between longs and shorts – as the firm is skeptical the