Kapstream Capital: A bright future for Absolute Return

Kapstream Capital is a A$ 4 billion Australian fixed income absolute return manager. The firm was established in January 2007 in Sydney by Kumar Palghat and Nick Maroutsos in partnership with Challenger Financial Services. Kapstream employees own 75% while Challenger owns 25%. The firm has a large institutional presence, 50% of assets are in Absolute Return strategies and 50% in Sovereign and passive strategies. The firm also has a growing retail presence with approximately A$60 million in Absolute Return.

The firm's flagship fund has delivered consistent returns with very few and minor down months. In this Opalesque.TV interview, Managing Director and portfolio manager Stephen Goldman explains Kapstreams' risk management and investment approach which also uses corollary and sometimes derivatives-based strategies. All investments are unlevered. The firm also believes demand for institutional quality Absolute Return products will continue to rise globally.

Stephen Goldman is a Managing Director and portfolio manager at Kapstream Capital. Prior to joining Kapstream, Mr Goldman was a Managing Director and Global Lead Portfolio Manager at Goldman Sachs Asset Management in New York from 2006 to 2010. While at Goldman Sachs Asset Management he was responsible for management and oversight of over $35 billion in global fixed income portfolios. As lead portfolio manager, responsibilities included working with strategy teams to identify and implement trade ideas, monitoring portfolio risks, conducting performance attribution analysis and reporting of portfolio outlook, strategy and positioning.

Prior to Goldman Sachs Asset Management, Mr Goldman was a Senior Vice President at PIMCO where he served as the European and Sterling Product Manager in London from 2002 to 2006 as well as the Global Product Manager in Newport Beach, California from 1999 to 2002. Prior to PIMCO Mr Goldman worked at The World Bank in Washington D.C. from 1993 to 1997 where he served as a Financial Officer for the Structured Product & Derivatives Group and the Capital Markets Group. He holds a Bachelor of Science in Management from Tulane University and a Master’s of Science in Economics from the London School of Economics.

Stephen Goldman has worked with Kapstream founders Kumar Palghat and Nick Maroutsos extensively together during their tenure at PIMCO. Kumar and Stephen also worked together at the World Bank in Washington DC.
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Kapstream Capital is a A$ 4 billion Australian fixed income absolute return manager. The firm was established in January 2007 in Sydney by Kumar Palghat and Nick Maroutsos in partnership with Challenger Financial Services. Kapstream employees own 75% while Challenger owns 25%. The firm has a large institutional presence, 50% of assets are in Absolute Return strategies and 50% in Sovereign and passive strategies. The firm also has a growing retail presence with approximately A$60 million in Absolute Return.

The firm's flagship fund ha ...more