Tepper-Backed Fund to Join Under Ellington After Asset Drop (1)

Eric Cole’s Warlander Asset Management will combine with Ellington Management Group in a bid to scale its credit strategy, according to an investor letter seen by Bloomberg.

Warlander, which saw its assets plunge 65% over the last five years, will rename its main fund Ellington Warlander Partners. Ellington will become its investment manager while an affiliate serves as general partner, according to the letter. Cole -- Warlander’s chief executive officer and chief investment officer -- and his team of four will join Ellington and continue managing the Warlander portfolio as a part of the deal.

Cole’s fund has seen ...