Scoggin
Capital Management is a New York-based hedge fund sponsor founded by
Curtis Schenker and Craig Effron. The firm takes an event-driven
approach, choosing companies that are going through some type of
restructuring, be it mergers, spinoffs, bankruptcies or financially
distressed companies.
Curtis Schneker and Craig Effron started
Scoggin Capital Management in 1998. Craig Effron is responsible for the
firm's credit opportunity fund while Curtis Schneker serves as Scoggin
Capital Management's CEO and Managing Partner. Between its inception and
August 2007, Scoggin Capital Management produced an average annual
return of 18.2 percent after fees, using no borrowed money. He only had
one year in which he lost money. That was 2002 and his fund was down 1.3
percent. Scoggin Capital Management also carries the distinction that
his returns are not correlated with the performance of the S&P 500.
In 90% of the times the months that the S&P 500 lost money, Scoggin
Capital Management made money.
Craig Effron and Curtis Schenker do
this by buying put options on the market indices, or shorting them
using ETFs or futures when options are expensive. Curtis Schneker and
Craig Effron never short individual stocks as a hedge, but sometimes
they will sell short if they believe those stocks are going to go down.
So, they tries to create some value on the short side as well.