Wednesday, 20 August 2014
Last updated 8 hours ago
Dec 2 2010 | 12:49pm ET
Three-and-a-half years after his fall from grace, Albert Hsu is back on the hedge fund circuit.
The co-founder of Coral Gables, Fla.-based Anchor Point Capital is currently running four separately managed accounts with assets "north of seven figures" out of New Canaan, Conn. It was in New Canaan where Hsu's bipolar disorder got the better of him: He posed as his ex-girlfriend (and mistress) on an adult Web site, inviting fellow users of Collarme.com to abduct and rape her.
It's also the town that he was barred from after his release on bail prior to his guilty pleas for attempted kidnapping and trafficking in personal identification information. Now, following his completion of his two-and-a-half-year sentence, Hsu is still barred from having contact with his victim and is a registered sex offender.
He's also trying to put his criminal past behind him by trying to reestablish his professional past as a high-profile hedge fund manager. He founded Tao Investments in May, hoping that the new firm can keep him on a legal path.
Hsu's new hedge equity options strategy is up about 15% this year. He told FINalternatives that the firm also has a consulting business catering to "clients in need of professional investment management experience."
Hsu said that Tao, which employs an analyst and a clerk, as well as Hsu himself, may launch a small hedge fund in May. But he acknowledges that, eager as he is to put his past as a sex offender and felon in his rearview mirror, potential clients may be less forgiving.
"It destroyed my career, and there are still some credibility issues," Hsu admitted.
Little wonder: Hsu was arrested in March of 2007 and accused of posting an ad on the bondage and sadomasochism Web site seeking "a real-life abduction and rape scene." He posted his victim's photo and license plate number, and even offered to potential takers the place she preferred to stand at a New Canaan commuter rail station.
Hsu pleaded guilty three years ago. His wife, Kendra, filed for divorce, and he claimed he had attempted suicide five times and posted the ad only after his bipolar disorder medication stopped working. At the time he entered prison, his lawyer, Robert Bello, said, "This destroyed his life. This is a life sentence," a pronouncement Hsu is working hard to disprove.
Before his arrest, Hsu was a managing director at Anchor Point, which he cofounded in 2005. Prior to founding the hedge fund, he managed money for The Atlantic Philanthropies, Ludwig Institute for Cancer Research, the Xerox pension fund and Commonfund.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note