Kevin B. Fruechte, CFA
16410 39th Ave N, Plymouth, MN •
[email protected] • (c) 763-226-9717
SUMMARY
Senior financial professional with a broad and deep range of experience in finance, risk, and capital markets; with a demonstrated ability to adapt to and thrive in a dynamic industry and market environment requiring complex analysis and problem solving; and with a strong desire to continuously build on a solid base of knowledge in all areas relating to economics, investment, and personal finance.
PROFESSIONAL EXPERIENCE
PINE RIVER CAPITAL MANAGEMENT, Minnetonka, MN (2007-2015) Global multi-strategy hedge fund manager with $15 billion under management, specializing in strategies involving arbitrage, mortgage-backed securities, and quantitative analysis Vice President, Treasury Analyst Established and developed a comprehensive daily capital reporting and cash management system for all funds under management in a constantly changing and growing environment. • Obtained in-depth knowledge of a wide range of derivatives, structured investment products, and hedging strategies, as well as the complex risk-based portfolio margining systems used to finance securities with various counterparties. • On a daily basis, reported to and communicated with a number of internal and external constituencies including portfolio managers, traders, risk managers, financing counterparties and operational staff, in order to ensure the integrity of and resolve any discrepancies with valuations, margin requirements, and capital allocations. • Analyzed and recommended re-allocation of financing terms and structures among prime brokerage, repurchase agreement, securities lending, and derivatives counterparties. • Led the development of internal systems to attribute capital usage and financing costs to applicable business units by combining internal risk metrics with actual broker margin and financing costs. • Optimized the allocation of excess liquidity based on analyses of various counterparty funding costs and risk exposures. *
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CASTLELAKE LP, Minneapolis, MN (2006-2007) Start-up hedge fund and private investment company focused on value investing strategies, particularly involving illiquid asset classes and industries Investment Coordinator Established and developed a process for managing and reporting on the firm’s capital usage and available cash. • Facilitated the final settlement of a wide range of purchase and sale transactions, primarily involving illiquid asset classes under privately negotiated terms. • Negotiated funding facilities with brokers by which to finance portfolios of distressed loans and securities. • Assumed responsibility for managing each fund’s excess liquidity and allocating resources to short-term investment vehicles and/or paying down financing balances, based on cash flow projections and available rates of return. *
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MERCED CAPITAL, Minnetonka, MN (1997-2006) Hedge fund manager focused on arbitrage and value investing strategies Treasury Manager / Distressed Debt Trader / Fund Accountant Created and developed a comprehensive and robust margin and cash management system which facilitated the analysis, reconciliation and optimization of the firm’s capital allocations and excess liquidity. • Using advanced Excel/VBA techniques, developed VAR-based and scenario risk models which replicated broker margin requirements and helped the firm to optimize allocations. • Analyzed excess cash balances and borrowings; re-allocated funds on a daily basis to take advantage of interest differentials between counterparties; and recommended spot and forward foreign exchange transactions to minimize financing costs. • Assisted in the negotiation of financing rates and terms provided by prime brokers. • Spent one year on the firm’s trading desk, analyzing and trading distressed convertible bonds and related hedging instruments; developed Bloomberg screening tools to identify capital-structure arbitrage opportunities. • Began in the fund accounting department, performing all aspects of the monthly valuation and financial statement issuance processes. *
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GMAC-RFC, Bloomington, MN (1995-1997) Mortgage originator and securitizer Senior Internal Auditor Performed internal audits of all business units and functional processes, focusing in particular on opportunities to establish performance metrics and implement operational efficiencies. *
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KPMG, Minneapolis, MN (1993-1995) Global accounting and consulting firm Supervising Senior Accountant Supervised financial statement audits of a diverse range of financial services industry clients, including large banks, insurance companies, and broker/dealers. *
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CLIFTON LARSON ALLEN, Austin, MN (1989-1993) National accounting and consulting firm Senior Accountant Supervised financial statement audits of a diverse range of clients, including financial institutions, manufacturing firms, health care facilities, and governmental entities. EDUCATION AND CERTIFICATIONS
Bachelor of Arts, Luther College, Decorah, IA -1989; Accounting major (Mathematics and Economics minor) Chartered Financial Analyst – since 2001; member of the CFA Society of Minnesota Certified Public Accountant – 1989-2001; license currently inactive Certified Management Accountant – since 1990 Passed the Certified Financial Planner examination – November 2014; certification is pending completion of applicable work experience requirement
Organizations: CFA Society of Minnesota Financial Planning Association of Minnesota Skills: Advanced Microsoft Excel and intermediate VBA programming Extensive experience using Bloomberg databases and analytics Ability to quickly analyze complex concepts and distill them down to their essential components Ability to grasp ‘big picture’ organizational priorities and to identify how individuals and tasks fit into that framework Interests: Coaching youth baseball and basketball Playing golf and softball Reading and listening to books, periodicals and podcasts relating to economics, investing, and personal finance
