STS Ranked #7- Best Hedge Funds
Barrons - Best 100 Hedge Funds (18 May 2013)
(Barrons targets funds with returns over a three year period with at least $300 million in adequate liquidity. Please see article for additional details on methodology)
Management of asset-backed distressed securities, primarily but not exclusively in the residential and commercial mortgage sector
Since June 2003, the firm has managed investment portfolio(s) focused exclusively on distressed asset-backed securities
In May 2008 the firm established the STS Partners Fund, LP and has managed this investment portfolio since
In February 2010 the firm established an off-shore fund, under a master/feeder structure, with STS Partners Fund,LP as the master fund.
To view any members biography, please click on their name.
Michael Craig-Scheckman has been in the investment business for over 30 years and has over 19 years’ experience in the distressed mortgage-backed/asset-backed (MBS/ABS) field. Mr. Craig-Scheckman is President and Owner of Deer Park Road Corporation (DPRC). He has operated DPRC as an investment advisor, focused exclusively on deeply discounted fixed income securities, from July 2003 until the present. Mr. Craig-Scheckman is the lead Portfolio Manager for STS Partners Fund, Ski Time Square Ltd. (offshore feeder fund), and a Separately Managed MBS/ABS Account for a large Institutional Investor. As of January 1, 2013, DPRC’s assets surpassed $820 million.
Mr. Craig-Scheckman started working for Millennium Partners in 1993, where his focus was mortgage-backed and asset backed securities. He maintained a portfolio management relationship, focused on MBS/ABS, with Millennium from 1993 until 2010. Prior to his employment at Millennium Partners in 1993, Mr. Craig-Scheckman held various trading positions at several securities firms and banks where his focus included metals, US government securities, and MBS.
Mr. Craig-Scheckman earned a BA in Physics at Queens College, New York, in 1975 and a MA in Physics at Columbia University, New York, in 1977. He is a native of New York and has lived in Colorado with his wife since 2003, and has four daughters.
Mr. Burg is also responsible for the management of the Firm’s portfolios and portfolio risk management. Mr. Burg has over 8 years’ experience valuing and analyzing mortgage and asset-backed securities. Prior to joining the firm, he was a Principal at General Capital Partners, focused on advising middle market companies in distressed situations. Previously, he was at Pursuit Partners, a $500 million fixed income hedge fund where his focus was on analyzing ABS opportunities. Prior to this position, Scott founded Clayton IPS’s ABS pricing division (now MountainView IPS), a world-wide leader of valuation for difficult to price assets.
Mr. Burg received his MBA from Daniels School of Business at the University of Denver in 2007, and a B.S. in finance from the University of Colorado in 2001.
Hao Li, CFA
Associate Portfolio Manager+
Mr. Li is focused on pricing and monitoring Deer Park’s portfolio. He has extensive experience in portfolio valuation and investment research. Prior to joining Deer Park he was at J.P. Morgan, where he worked on a $1bn non-agency MBS portfolio and a $3bn consumer ABS portfolio. Prior to his employment at J.P. Morgan, Mr. Li was at Millennium Partners where he was responsible for researching and trading non-agency RMBS securities, as well as financial modeling and property valuation. He also spent 2 years as a fixed income trader at HSBC in Shanghai, China.
Mr. Li received his MBA from Columbia Business School in 2010, a Masters in Finance (2006) and his Bachelors in Economics (2004) from the Peking University School Of Economics in China. He earned his CFA in March 2011.
Chief Operating Officer+
Mr. Craig is responsible for overseeing all aspects of the day to day operations of Deer Park Road Corporation, with the exception of portfolio management and trading. Mr. Craig has extensive experience in managing businesses, prior to joining Deer Park Road Corporation, he was President/CEO of a nationally recognized environmental laboratory.
Mr. Craig earned a BA in Geology and Environmental Science at University of Pennsylvania, Pennsylvania (1989), and a MS in Earth Sciences at Dartmouth College, New Hampshire (1991).
Steve Paoli, CPA
Chief Financial Officer+
Mr. Paoli oversees all accounting and tax functions at Deer Park Road Corporation. Prior to joining the firm, Mr. Paoil spent several years working as an accountant in areas of tax planning and consulting, and financial analysis. Prior to this, he spent six years as a proprietary trader for several brokerage firms in New York where he developed and implemented risk/reward strategies, using fundamental and technical analysis.
Mr. Paoil earned a BS in accounting from Clemson University, South Carolina (2000). He earned his CPA in 2012.
Will Bashan, CFA
Will is responsible for overseeing and managing all marketing and client service functions for Deer Park Road Corporation. Mr. Bashan has been in the investment business for over 20 years, on both the institutional and retail sides. Previously, he served as President of CIGNA Financial Services, Executive Vice President of Delaware Investments and Vice President at New York Life Investment Management. Most recently, Mr. Bashan was head of WB Real Estate, a real estate development and investment firm.
Mr. Bashan earned a BS in Business/Economics from the State University of New York at Oneonta (1980), and he went on to earn his MBA at the University of New York at Binghamton (1981). He has been a Chartered Financial Analyst since 1992.
Barons Best 100 Hedge Funds (18 May 2013)
Reuters Subprime Mortgage Bond (7 May 2013)
Finalternatives - Deer Park Closes One Fund, Opens Another (8 May 2013) (PDF)
Hedgeweek - Deer Park launches mortgage/asset-backed fund (3 April 2013)
FINalternatives - Deer Park Launches New MBS/ABS Fund (3 April 2013)
Hedgeweek Interview - Michael Craig-Scheckman (11 Oct 2010)
SCI Interview - Michael Craig-Scheckman and Will Bashan - Deer Park Profile (4 Aug 2011) (PDF)