Our Team

With a total staff of 53 employees, KLS Diversified has 27 investment professionals.

Managing Partners

Jeffrey Kronthal
Harry Lengsfield
John Steinhardt

Investment Committee*

Chris Cichella
Alex McNeel
Matthew Parker
Heath Sroka
Lauren Sokolowski Stelzer
Ned Zachar
Michael Zarrilli

CFO & CCO

Brett Lipsky
Joseph Schneider

*Two of the following four are additional rotating Structured Products portfolio managers on Investment Committee: Karan Chabba, Mark Crawley, Brian O’ Hara

Jeffrey Kronthal

Managing Partner
Co-Chief Investment Officer

Jeff runs the Structured Products strategy and is Co-CIO of the overall portfolio, sharing responsibility for capital allocation and risk management with the other Co-CIOs. Jeff has over 30 years of experience in fixed income and investment banking, 17 of which were at Merrill Lynch. When he left the company in the summer of 2006, he was a Senior Vice President, a member of the firm's Operating Committee and Head of Global Credit, Real Estate and Structured Products in the Global Markets & Investment Banking division. In that capacity, he was responsible for trading and principal investments in credit, commercial and residential real estate and asset-backed securities. He also managed the origination activities in mortgages, asset-backed products and commercial real estate, including commercial real estate investment banking. In addition, Jeff was responsible for many of the investment and lending activities of Merrill Lynch’s Bank Group, including mortgage portfolios. He also co-headed Merrill Lynch's middlemarket lending business called Merrill Lynch Capital. Prior roles included Head of Global Debt and Credit Derivatives, which encompassed Commodities and Global Liquidity businesses. He also headed Merrill Lynch’s Global Debt eCommerce business and the Structured Transaction Review Committee. Prior to Merrill Lynch, Jeff was Head of Fixed Income at L.F. Rothschild and a member of the firm's Executive Committee. Jeff started his career in 1978 at Salomon Brothers as one of the initial members of the firm’s Mortgage Department, where he served as a Managing Director. Jeff received a B.S. in Accounting in 1977, magna cum laude, and an M.B.A. in Finance in 1978, both from the Wharton School of the University of Pennsylvania.

Harry Lengsfield

Managing Partner
Co-Chief Investment Officer

Harry runs the Rates strategy and is Co-CIO of the overall portfolio, sharing responsibility for capital allocation and risk management with the other Co-CIOs. Harry spent 20 years at Merrill Lynch. When he left the company in the summer of 2006, he was a Senior Vice President, a member of the firm’s Operating Committee and Head of Global Rates, Currencies and Financing. Harry’s prior roles at Merrill Lynch include Head of European Equities as well as Head of the European Fixed Income division, where he managed trading of rates, currencies, mortgages, distressed assets and credit. Harry’s responsibilities involved trading and managing a number of fixed income products and strategies including, but not limited to, the long end of the strip and bond curves, bond basis, yield curve arbitrage, as well as broader product strategies utilizing non-dollar interest rates, mortgages, structured credit, equities, and both G7 and local currency products. Successful investment experiences involved strategies during the 1987 stock market crash, the convexity crisis of 1994, the credit challenges of 1998, the volatile shock of the September 11, 2001 tragedy and the ensuing economic disruptions. Harry’s additional management experience at Merrill Lynch included roles as Head of the Debt Risk Committee, COO of Fixed Income, and senior board roles in London and New York. Harry received a B.A. in 1979 from Denison University and an M.B.A. in 1981 from Penn State University, where he was a Beta Gamma Sigma scholar.

John Steinhardt

Managing Partner
Co-Chief Investment Officer

John runs the credit strategy and is Co-CIO of the overall portfolio, sharing responsibility for capital allocation and risk management with the other Co-CIOs. John has over 30 years of experience in the fixed income and credit markets across many disciplines. Prior to leaving J.P. Morgan Securities in October 2004, John was Head of North American Credit Markets and a member of the firm’s Investment Bank Management Committee. In that capacity, he was responsible for North American syndicated loans, commercial mortgages, structured credit products, credit derivatives, high yield bonds, investment grade bonds, asset-backed securities, private placements, rating advisory work and the restructuring business. John was also jointly responsible for global structured credit, global credit hybrids, money markets and interest rate derivatives marketing. Before the J.P. Morgan/Chase merger, John was Head of US Securities at Chase Securities, Inc. and a member of the Management Committee of Chase Manhattan Bank. Before joining Chase in 1996, John was Executive Vice President and Head of the Fixed Income and Real Estate Divisions at Furman Selz, as well as a member of the firm’s Operating and Management Committees. Previously, John was a Senior Managing Director at Bear, Stearns & Co. Inc., with responsibilities in the Fixed Income Division. He was the Chairman of the firm’s Financing Committee and a member of the Board of Directors. John began his career at Goldman, Sachs & Co. in 1979 as a corporate bond trader, became Head of Corporate Trading in the early 80’s, and started the firm’s fixed income proprietary trading effort in the mid-80’s. Prior to co-founding KLS, in 2005 John explored creating a dedicated credit investment manager, Spectrum Investment Group LP, which he ultimately decided not to launch. John received a B.A. in 1975 from St. Lawrence University and an M.B.A. in 1979 from Columbia University.

Chris Cichella

Co-Head of Client Development
Investment Committee Member

Chris co-heads Client Development for KLS.  He has been involved in the investment industry for over 20 years, with experience ranging from equity trading to client development.  Prior to joining KLS in 2017, he was a Managing Director at MidOcean Credit Partners, an alternative credit specialist that grew from 2009 launch to $5bn in AUM.  Earlier, Chris had senior client-facing roles at hedge fund advisory firms Dorchester Capital Advisors and Tremont Capital Management.  He received a B.A. in Political Science and Russian Studies from Duke University in 1992.

Alex McNeel

Portfolio Manager Rates
Investment Committee Member

Alex has over 10 years of experience in global rates, currencies and options trading. Alex joined KLS at the Fund’s inception in 2008. At KLS, Alex has been responsible for the non-dollar rates portfolio, focusing specifically on global sovereign bonds and interest rate derivatives. Prior to KLS, Alex was a trader in the Credit Portfolio Group at J.P. Morgan Chase & Co. from 2006 to 2008, during which time he was involved in structuring and managing hedges for J.P. Morgan’s investment bank against systematic credit risk, as well as managing country specific market risks arising from the firm’s derivatives portfolio. Alex received a B.S. in International Economics, cum laude, in 2006 from Georgetown University.

Matthew Parker

Portfolio Manager Rates
Investment Committee Member

Matt has over 13 years of experience in fixed income trading and finance with a focus on liquid interest rate products. Matt has managed portfolios consisting of US Treasuries, interest rate swaps, swaptions, futures, options, credit default swaps, Agencies and MBS pass-throughs. Matt joined KLS at the Fund’s inception in 2008. His buy-side investment experience also includes positions at Sailfish Capital Partners and Susquehanna International Group. Prior to joining Susquehanna in 2005, Matt spent two years at Citigroup’s Investment Banking Division, structuring Housing and Student Loan transactions. Matt received a B.A. in Business Economics with honors, and in Political Science in 2003 from Brown University.

Heath Sroka

Portfolio Manager Credit
Investment Committee Member

Heath has been involved in the investment industry for over 14 years. His experience spans the capital markets including equities, high grade and high yield fixed income, and distressed/special situations. Heath’s education in Real Estate provides him with a unique approach to the analysis of his sectors. Prior to joining KLS in 2008, Heath was an Analyst/Trader in the Proprietary Group at Madoff Securities (the regulated broker-dealer entity) in New York City, where he helped operate a $250 million portfolio of long-short equity and fixed income investments, primarily leveraged loans and high yield bonds. In addition to providing analytical and trading support, Heath was responsible for detailed P&L analysis as well as creating and managing the books’ hedging techniques. Previously, Heath was a market maker in NYSE listed securities at the same firm. Heath received a BA from Colgate University in 2003 with a major in Economics and an MS in Real Estate in 2008 from New York University.

Lauren Sokolowski Stelzer

Co-Head of Client Development
Investment Committee Member

Lauren has over 12 years of experience in fixed income investing and hedge fund marketing. Prior to joining KLS in 2010, Lauren was the Director of Marketing and Investor Relations at Land & Buildings Investment Management. Previously, she was investing in commercial real estate fixed income at Starwood Capital group as a CRE debt Acquisitions Associate. Lauren started her career at Morgan Stanley in the Commercial Real Estate Principal Transactions Group within Structured Products in 2004. Lauren received a B.S. in Economics from the University of Pennsylvania, The Wharton School, concentrating in Finance and Legal Studies in 2003.

Ned Zachar

Partner
Portfolio Manager Credit
Investment Committee Member

Ned has over 31 years of experience in investment research and management spanning a broad spectrum of domestic and international capital markets and including growth and value equities, investment grade and high yield fixed income, distressed debt and special situations. Prior to joining KLS in 2008, he was a Portfolio Manager in the Proprietary Group at Madoff Securities (the regulated broker-dealer entity), where he managed a $250 million portfolio of long-short equity and fixed income investments, including leveraged loans and high yield bonds. Previously, Ned was at Thomas Weisel Partners, from 1998 to 2004, where he was a Founding Partner and served in a number of capacities, including Director of Research, Co-Chairman of the Commitments Committee, and a member of the firm's Operating Committee. From 1997 to 1998 Ned was a Partner at Montgomery Securities and Co-Head of the High Yield Bond Group. He also formerly held positions at Chase Securities, Inc., Bear, Stearns & Co. Inc. and Duff & Phelps. Ned received a B.S. in Economics in 1985 from Iowa State and an M.B.A in 1988 from Loyola University of Chicago. Ned is a Chartered Financial Analyst and a member of the New York Society of Securities Analysts.

Michael Zarrilli

Partner
Chief Operating Officer
Investment Committee Member

Michael has over 40 years of experience in fixed income, credit, banking and hedge fund markets. Prior to joining KLS in 2008, he was CEO/CIO of Stanwich Capital LLC, which he founded in January 2006. Stanwich provided a wide range of advisory services to hedge funds. Until May 2005, he was with J.P. Morgan and its predecessors for 32 years, most recently as Managing Director, Deputy Head of North American Credit Markets and a member of its Management Committee. The North American Credit Markets group was responsible for syndicated loans, structured credit products, credit derivatives, investment grade bonds, asset-backed securities and private placements. In addition to his broader management responsibilities, Michael specialized in credit, structured credit, and certain high-value issuer and investor clients. He was Deputy Head of US Securities at Chase Securities, Inc. and a member of the US Securities Management Committee. Previously, he was Head of Corporate Bond/Asset-Backed Securities Syndicate, Research, Trading and Sales at Chase, and Head of Corporate Bonds and Asset-Backed Securities at Chemical Securities. Prior to Chemical Securities, Michael was Treasurer of Manufacturers Hanover Corporation, Global Head of Syndicated Loans, Chief of Staff, Coverage Banker, Corporate Lender and Workout Specialist at Manufacturers Hanover. In 2005, along with John Steinhardt, Michael explored creating a dedicated credit investment manager, Spectrum Investment Group LP, which they did not launch. Michael received a B.S. in Management Engineering in 1971 from Worcester Polytechnic Institute and a Masters in Finance in 1973 from the Wharton School of the University of Pennsylvania.

Brett Lipsky

Chief Financial Officer

Brett is the Chief Financial Officer of KLS Diversified Asset Management LP (“KLS”) and is responsible for KLS’ year-end audits, financial statement preparation, tax statement preparation and the overall finance and accounting function. Prior to KLS, in 2007 Mr. Lipsky joined Centerlight Capital Management as an equity volatility trader. During Centerlight’s start-up, he assisted in all aspects of the funds’ launch, including creating processes for the middle office, back office, and financial control. He also served as the funds’ controller and assisted with month-end profit and loss and NAV preparation. In 2005, Mr. Lipsky joined Archeus Capital Management, a $3 billion hedge fund, as a client relations associate. At Archeus, he assisted with the year-end audits and served as a product controller to generate the NAV for two funds. He ultimately took responsibility as liquidating controller of the funds and management company. Mr. Lipsky started his career working in the Transaction Advisory Group for Ernst & Young in 2003 as a financial modeler. In this capacity, he built complex custom financial models for business planning and development, business analysis, and M&A integration. Mr. Lipsky earned a BBA, with an emphasis in Finance and Accounting, in 2003 from the Stephen M. Ross School of Business at the University of Michigan. He is a CFA Charterholder and a current member of NYSSA.

Joseph Schneider

Chief Compliance Officer

Joe joined KLS in August 2017 and is Regulatory Counsel and Chief Compliance Officer.  Prior to joining KLS, from 2011 to 2017, Joe was a Senior Compliance Officer at Apollo Global Management, LLC. Prior to that, from 2004 to 2011, Joe was an Associate Attorney in the Investment Management Group at Schulte Roth & Zabel LLP handling primarily compliance and regulatory matters for private investment funds.  Joe received a BA in English from the State University of New York at Albany in 1990 and a JD from California Western School of Law in 1993.  Joe is a licensed attorney in the State of New York.