Scottwood Capital Management

With a 10-year track record that averaged almost 12 percent net per year, Edward "Eddie" Perlman returned all of his external investors' money in his Scottwood hedge fund in 2011. The next year, 2012, he opened the Perlman Family Office to invest in the U.S. stock and bond markets. Net gains were 34.34% for 2013, 19.62% for 2014, and 3.06% for 2015. Beginning January 1, 2016, the Perlman Family Office Fund is 100% in cash and closed to new investors.

Background

Edward Perlman founded Scottwood Capital Management in a small Park Avenue office in New York City in 2001 when he put together some of his own money with funds from friends and clients. He later moved the firm in 2004 to Greenwich, Connecticut. Performance driven, rather than an asset gatherer, Perlman set up Scottwood as a long/short credit fund to invest in event-driven situations. Scottwood was registered with the SEC.

Managing close to $1 billion at the fund's peak, Perlman and his talented 15-member team were recognized within the hedge fund industry. The publication Hedge Fund Markets awarded Scottwood as the "best event-driven hedge fund in the United States" in 2009. That same year, Absolute Return selected Scottwood as a final nominee for the top U.S. event-driven hedge fund, based on risk-adjusted returns. And in 2010, Barron's magazine awarded Scottwood top ranking in its Penta list of the Top 100 Hedge Funds in the World, based on one- and three-year performance.

After careful planning, Perlman returned his clients' capital in July 2011 and told investors he would open a single family office. By 2012, he began investing friends' and family assets in the markets via his namesake firm. The investment philosophy he uses today is similar to that of his old hedge fund Scottwood, which is to generate the best possible long-term risk-adjusted returns. Perlman places high priority on capital preservation, tax efficiency, liquidity and low investment costs.