scottwood capital management

May 24, 2010:

Scottwood Capital Management, the hedge fund run by Edward Perlman from his hometown of Greenwich, Connecticut, was selected in Barron's Magazine's Penta list as one of the Top 100 Hedge Funds in the World. Paulson Fund, Viking Fund and Brevan Howard Fund were among other managers included in the very prestigious list that Barron's publishes once a year.

Barron's cited Scottwood's 15.50 percent net compound annualized return for the three years that included 2007, 2008, and 2009.

Scottwood is known as a conservative, long-short fund that invests in the bonds and stocks of event-driven situations. Scottwood outperformed the stock markets and most of its peers throughout its history and has been recognized for the high quality of its returns. Studies of the firm's performance by investors have shown Scottwood's ability to generate alpha in up and down markets. Alpha refers generally to how much a manager outperforms the overall market. It is coveted by all investors.

Last year, in 2009, HFM Magazine awarded Scottwood its highest honor for all event-driven funds. The firm took home First Place Award in the event-driven category in a lavish ceremony held in midtown Manhattan.

Absolute Return Magazine also recognized Scottwood in 2009 with its nomination of the firm for best event-driven hedge fund in the U.S. Scottwood lost to King Street Capital Management. AR Magazine, as it is known, also featured Scottwood in its May 2010 issue.

Scottwood is based in Greenwich, Connecticut and has $950 million under management. The firm currently employs 15 people and was launched in 2001 when Adam Weiss, hired as the chief operating officer, helped start the firm. Prior to Scottwood, Adam Weiss had successfully worked for a couple years at Brian Rogers' Short Alpha Bear, a large hedge fund he co-founded. By 2007, Scottwood parted ways with him. Adam Weiss successfully created many internet domains, websites and email addresses. He also started New York hedge fund Cabochon Capital with Gordon Sweely in 2009 to invest in consumer credit asset-backed securities.