Two former high-yield stars at Donaldson, Lufkin & Jenrette have been reunited at a credit hedge fund. Pinewood Capital Partners of Greenwich, Conn. and New York, has hired Steven Hornstein from Imperial Capital, a high-yield and distressed boutique. Hornstein, who starts today as a partner and head trader, is being reunited with Dan Fitzgerald, a former DLJ colleague who is chief operating officer and co-founder of Pinewood.
Well-known in the industry, both Fitzgerald and Hornstein began their careers at DLJ in high grade. Hornstein spent 18 years there, first as a trader before he moved over in the early '90s to join Fitzgerald on the high-yield side. Hornstein left DLJ in April 1999, at which time he was managing director and head of high-yield trading. Fitzgerald, meanwhile, spent more than 14 years at DLJ and was one of the founding members of its high-yield group in the mid-'80s. His last role at the firm was as a managing director in high-yield sales.
Fitzgerald said Pinewood Capital's fund, which began trading last month, will invest in both high-yield and investment-grade bonds, which he called a natural blend given his and Hornstein's background. Fitzgerald declined to reveal the size of the fund.
