One of the most unfortunate hedge fund closures of recent years was that of Scout Capital Management. The well-respected, well-performing New York–based firm shut down in 2014 after Adam Weiss, one of its two founding partners, decided to step back from managing money (though he went on to launch his own fund). The good news from the closure of $6.7 billion Scout was that it resulted in a diaspora of new funds. One of the most exciting is Pacific Grove Capital, founded by Pacific Grove CIO and former Scout partner Jamie Mendola, 38. Though Mendola grew up in Buffalo, New York, and attended Binghamton University in his home state, after working on Wall Street — first in leverage finance at JPMorgan Chase & Co. and then in private equity at JLL Partners — he went to Stanford University for an MBA in management and only briefly looked eastward again. In 2005 Mendola joined San Francisco–based special situations fund Watershed Asset Management as a principal; Scout hired him four years later. Originally based out of New York, covering the retail and financial sectors and developing Scout’s distressed-debt and credit default swap efforts, he played a lead role in opening and managing the firm’s Palo Alto, California, office. When Scout closed, he was well positioned to open Pacific Grove back in San Francisco. Compared with Scout, Pacific Grove, which launched last October, will hold fewer positions and invest mostly in small to midsize companies; this will constrain the fund’s size to about $2 billion. But Mendola, who recognizes the need to focus on the culture and quality of the firm he builds, in addition to investment returns, is happy with that outcome.

The 2015 Hedge Fund Rising Stars
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Paul Alzapiedi
Silver Point Capital
Adam Bernstein
Pagoda Asset Management
Jennifer Bloom
Robert Campion
Canyon Capital Advisors
Katherine Chan
Anandar Capital Management
T. Troy Dixon
Hollis Park Partners
Curtis Gallagher
Park Hill Group
Brian Goldberg
Geoffrey Keegan
Creciente Partners Investment Management
Brian Kelly
Millennium partners
Robert Kennelley
Rocaton Investment Advisors
Ryan Kilstein
Southpoint capital advisors
Monica Lai
Leigh Lower
Graham Capital Management
Pooja Malik
Nipun Capital
Jamie Mendola
Pacific Grove Capital
Bradley Neumeister
Oleg Nodelman
EcoR1 Capital
James Oussedik
Sidley Austin
Amit Pardasani
Owl Creek Asset Management
Putri Pascualy
Courtney Powers
University of texas Investment Management Co.
Laura Roche
Roystone Capital Management
Harlan Saroken
Perry Capital
Richard Scarinci
Blackstone Group
Randall Shu
Samuel Siegal
Senator Investment Group
Nadine Terman
solstein Capital
Anastasia Titarchuk
New York State Common Retirement Fund
Christina van Beelen
Secor Asset Management