Battered Farallon In Major Restructuring

Mar 15 2010 | 2:14pm ET

Farallon Capital Management, once among the very largest hedge funds in the world, is restructuring following a difficult few years.

Four of the San Francisco-based firm’s senior portfolio managers are leaving, The Wall Street Journal reports, as Farallon moves to focus more on credit and risk arbitrage strategies at the expense of stocks.  In addition, the firm may restructure or sell off its $2.5 billion in real-estate assets.

The $21 billion firm is also moving to centralize its operations, merging its Noonday Asset Management division into Farallon. Noonday, which manages $7 billion, has long been run separately from the parent fund from offices in North Carolina and London.
The firm is saying goodbye to a quartet of stock managers. William Duhamel, Jason Moment, Ashish Pant and Richard Voon are leaving, the firm told investors last week. The four are expected to launch their own hedge fund.

Farallon managed more than $36 billion in 2008, making it the second-largest hedge fund in the world. But the firm suffered its first-ever loss in its 24-year-history that year. The firm announced a succession plan last year, naming co-managing partner Andrew Spokes as founder Thomas Steyer’s second-in-command.

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