One year ago
»» York Capital Management, Jamie Dinan’s then-$11.1 billion firm, promoted Adam Semler to chief operating officer, a new position. Semler previously held the title chief financial officer.
Just a few months later, in September 2010, York sold off a minority stake of its business to Credit Suisse, a deal that meant considerable payouts to Dinan and York’s other 10 partners but raised concerns among some of the firm’s investors. York Capital managed $15.5 billion as of mid-May and its flagship York Capital Management fund was up 5.28% through April 30. See the performance for the firm’s funds in the AR database.
»» Marathon Asset Management re-opened its Marathon Special Opportunity Master Fund, a $2.8 billion credit strategy that had been closed for more than two years. Founders Bruce Richards and Louis Hanover decided it was an opportune time to accept new cash, envisioning many dislocated and distressed debt opportunities.
Although the Marathon Special Opportunity Master Fund was in positive territory in 2010, gaining 7.9%, it underperformed the AR Distressed Index, which rose 12.87%. This year through April, the fund is up 4.53%, and has produced a net annualized return since inception of 15.83%. The firm managed $8.3 billion as of January 2011.
Five years ago
»» David Basile and Burak Ince, both portfolio managers at Tudor Investment Corp., left to form Safir Capital, and launched the Safir Capital Local Emerging Markets Fund in June 2006.
The fund started off with promise, gaining 10.05% in the second half of 2006 and 13.10% in 2007, but after dropping 1.64% in the first half of 2008, Basile and Ince liquidated the fund. Its net annualized return since inception was 10.20%. The duo could not be reached.
»» While Hurricane Katrina flattened New Orleans in 2005, the $400 million New Orleans Employees’ Retirement System pension fund escaped relatively unscathed, largely due to its $40 million allocation to hedge funds and funds of funds.
Despite dodging natural disasters, it was a white-collar crime that caught up with the pension. The pension, which managed $330 million as of February 2011, was caught in Bernard Madoff’s Ponzi scheme via three of its funds of funds, Meridian Capital Partners, Silver Creek Management, and Union Bancaire Privée (UBP). As of February 2011, New Orleans was still in the process of redeeming its $3.5 million investment from UBP. The pension did not immediately return a call seeking comment.
