Brian Sconyers is the new sole owner of Franklin hedge fund firm Sconyers Warmbrod Capital Management, having bought out partner Tommy Warmbrod.
The move materialized after two larger firms – one local, one from New York – recently made Sconyers and Warmbrod acquisition offers, Sconyers said. Warmbrod wanted to sell, but Sconyers didn't. Instead, he quickly arranged to buy out his partner for an undisclosed sum.
Sconyers was an investment rep at UBS and Stifel Nicolaus, among others, before striking out on his own in 2006. Warmbrod, who spent five years as controller of a Bridgestone division as well as Hennessy Industries before getting into the investment business in 2004, joined him last year. He could not be reached for comment about his plans.
Sconyers Warmbrod – its owner plans to keep the name as is for now – manages more than $100 million. Its main offering is a municipal arbitrage product that buys long-term bonds, places them in Tender Option Bond trusts at a major investment bank, then issues and sells short-term paper to tax-free money-market fund managers. This carry trade between the long- and short-term bonds throws off tax-free income.
Sconyers plans to diversify this summer with a fund that will invest about $50 million in real estate.
"You've got real estate you can buy at 60 cents on the dollar," he said, outlining his bottom-fishing rationale. "We feel pretty secure in that. We're trying to buy very steady things that will be around at the end of the day and then generate income off of them."
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