Fido Vet Bruderman, Of Bachelor Party Fame, Launches Hedge Fund

May 20 2011 | 1:14pm ET

Thomas Bruderman, the former Fidelity Investments star trader whose infamous 2003 bachelor party made headlines and remade gift-giving rules on Wall Street, is starting over with a hedge fund.

Bruderman and two other partners have launched VP Theta in Farmington, Conn. The new firm has raised about $100 million, including capital pledged by the partners themselves, Reuters reports.

The new firm is a value-oriented quantitative specialist—"VP" stands for "value portfolio"—investing in equity derivatives. The three partners, Bruderman, childhood friend Andrew Stone and one other, plan to begin marketing the fund in the fall.

Bruderman has worked to put his legendary bachelor party—and the ugly fallout from it—behind him, although he acknowledges that he hasn't heard the end of it from friends and colleagues.

"I deserve it," he told Reuters. "I do not begrudge anyone from having a few laughs at my expense."

Laughs aren't the only thing had at Bruderman's expense: Last month, he finally settled Securities and Exchange Commission charges stemming from the party and other gifts and travel he received from brokers seeking Fidelity's business for $350,000, although he did not admit or deny wrongdoing. He also acknowledges that he had to leave Fido under pressure in 2004 as a result.

"The whole affair was nicely salacious and there was plenty of free press to be had," he said. "The recent headlines have made it abundantly clear that there are issues out there which clearly dwarf this one."

"Dwarf," perhaps, was a poor choice of words: One of the headline-grabbing aspects of the 2003 shindig on a yacht in Miami was the presence of midget entertainers alongside the strippers, although Stone, who admits he arranged the midgets, denies one widely-reported feature of the party: midget-tossing.

The party cost $75,000, paid for primarily by Jefferies Group and planned by Jefferies broker Kevin Quinn. Quinn himself has since gotten into the hedge fund business, launching Cottage Capital in 2003.

The bachelor party preceded Bruderman's marriage to former Tyco CEO and convicted felon Dennis Kozlowski's daughter. The two have since divorced, and Bruderman is remarried, this time without the hoopla.

"I felt like I already had that chapter of my life," Bruderman said.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.