London-based Rubicon Fund Management has initiated legal action against two of its former fund managers—Santiago Alarco and Tim Attias—and GAM Holdings research chief Catherine Cripps, with whom Attias plans to launch a new fund next year.
Rubicon alleges that Alarco and Attias "conspired and acted in breach of their covenants and fiduciary duties to Rubicon whilst still in its employ," the company said in a statement. Rubicon is seeking declaratory relief, injunction, damages and account of profits and costs.
Attias and Alarco were co-managers of Rubicon’s top-performing Global fund which has posted double-digit returns in each of the last three years (including a 44% return in 2008). Attias left the company in January of this year and Alarco followed in April—just as Rubicon co-founder Paul Brewer returned from a two-year leave of absence. Alarco is currently sitting out his non-compete agreement.
In early July, Attias and Cripps announced plans to launch a global macro fund to be called Sata Partners.
A Rubicon spokesman said, “Aside from the legal proceedings we are keen to correct recent media reports about the historic management of our funds.” In its statement, the firm attributes “two-thirds” of the Global fund’s 44.80% 2008 return to CIO Brewer.
Further driving the point home, the Rubicon statement adds: “Paul Brewer, the man who built Rubicon, is now very much back in the driving seat and is determined to protect the interests of investors and Rubicon’s reputation.”
The Caymans-domiciled Rubicon had assets under management of $1.4 billion as of 2010.