Highbridge Dumps Event-Driven Team

Jan 31 2011 | 3:38pm ET

It was a “difficult” decision, Highbridge CEO Glenn Dubin said during an employee conference call last Thursday, but the New York-based hedge fund firm has decided to let go its entire event-driven team led by Jason Erslaw.

Dubin said the decision was “no reflection” on Erslaw or his team, underlining that Erslaw had done an “extraordinary job,” particularly in 2008/20009. He pointed, however, to the significant amount of “overlap” between the work of the event-driven team and that of the hedge fund’s other teams:

“Our view is...that the that the area of event-driven investing—relative-value investing—folds into many of the other areas that we’re engaged in; fundamental investing, whether it be on the long/short teams’ focus on individual stocks...or some of the event-driven investing that has found its way into the convertible book and the capital structured book...[and] the credit opportunities business...”

Dubin said he felt Erslaw and his team were highly capable and would be “much better served as individuals and professionals to be able to develop that capability at organizations, frankly, that don’t have fundamental long/short investing and don’t have credit opportunities capability like we do.” Dealbreaker.com was first to report the news of the layoffs.

Highbridge Capital CTO Jonathan Zhukovsky will also be leaving the company, with CFO Christopher Hayward assuming both roles. Highbridge, founded by Dubin and Henry Swieca, manages an estimated half of JPMorgan’s $50 billion in hedge fund assets.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR