Edward "Eddie" Perlman made the transition from overseeing
outside institutional client capital in his hedge fund to
managing private capital. On December 1, 2012, he began investing through his newly formed Perlman Family Office after ten years managing Scottwood Capital Management, the Greenwich, Connecticut based hedge fund firm he founded in 2001. He closed Scottwood on July 1, 2011, after deciding to return all of his investors' money.
In his single family office, Mr. Perlmans investment approach
is similar to the one he used in his former hedge fund. The firm's main investment objective is to generate good risk- adjusted returns, with alpha. High priorities are capital preservation with proper risk controls, a liquid portfolio, tax efficiency, and low investment costs. Leverage is not used.
The strategy of the Perlman Family Office is value-based and
event-driven. The firm invests in U.S. equities and credit, diversified across industries and asset classes. It is long biased, with short exposure for hedging and alpha generation. Capital is allocated dynamically and opportunistically, with high levels of cash sometimes maintained. Research is conducted from the bottom up, but with a top down view.
For his 10-year track record managing Scottwood, which
was registered with the SEC, Mr. Perlman produced net annualized returns of almost 12% per year, compared with a flat stock market and a 6% annualized return by the hedge fund industry for the same time period. His best year was 2009, when he gained a net 44.05%. His worst year was 2008, when he was down a net 7.65%. During its ten year run, Scottwood Capital Management was recognized in the industry as an award-winning hedge fund. In 2010, Barrons ranked the money manager in its Penta list of top 100 hedge fund firms worldwide, when taking into account one- and three-year performance periods. Hedge Fund Markets awarded Scottwood First Place as the best event- driven hedge fund in the U.S. in 2009. That same year, Absolute Return selected the hedge fund a final nominee for its award for best event-driven fund based on risk-adjusted returns. -----------------------------------------------------------------------
Edward Perlman had launched Scottwood Capital Management
from a small Park Avenue office in New York City in 2001 with his own money and funds that he raised from friends and clients throughout the first year of operation. By generating good returns and building out a solid investment team, Mr. Perlman was able to grow Scottwood into a firm with $985 million of assets under management and 16 employees.
Adam Weiss helped start Scottwood Capital Management as a
chief operating officer, after a successful couple of years at Short Alpha Partners, a large hedge fund he co-founded with Brian Rogers with a small amount of capital. With a strong background and much experience in credit cards, particularly in dealing with American Express, Adam Weiss by 2006 successfully created many, many internet domains, websites and email addresses, including creditcardrefi.com, creditorforgetit.com and tickler.com. Working bi-coastal from Los Angeles, Adam Weiss reported to Edward Perlman until 2007, when the firm parted ways with him. Later, in 2009, he successfully launched New York-based hedge fund Cabochon Capital with Gordon Sweely to invest in consumer credit asset- backed securities. And then, in 2015, Adam Weiss co-founded yet another well-known, successful hedge fund, this one called Ocean Peak Capital Management, that had big-time financial backing from Peter Briger, a co-founder of Fortress Group.