Rubicon Fund Management's former interim chief investment officers were anything but faithful deputies to firm founder Paul Brewer after the latter was seriously injured in 2009, the hedge fund's lawyer has alleged.
A lawyer for the London-based hedge fund said yesterday that Timothy Attias and Santiago Alarco conspired to make their temporary control of the firm permanent in the wake of Brewer's fall from a horse. Rubicon is suing the two, as well as its former head of investor relations and another partner, accusing them of breaching their fiduciary duty in setting up a new hedge fund, Sata Partners.
Among Attias and Alarco's partners—and now co-defendants—at Sata is Catherine Cripps, the former head of research at GAM Holdings. GAM's decision to withdraw almost US$300 million from Rubicon is cited among the "catastrophic redemptions" that slashed Rubicon's assets by more than US$1 billion.
Those losses "set Rubicon back by about four years," Paul Downes, the hedge fund's lawyer, said.
Attias and Alarco left Rubicon early last year, as Brewer returned from his two-year leave of absence. His decision to do so left Attias "incandescent with rage," Downes said; Attias had apparently hoped that Brewer would sell Rubicon to him and Alarco.
"We're at total war with these guys," Attias told Alarco, Downes said. He also cited an e-mail between the two, in which the latter wrote, "Nothing will drive these idiots out quicker than if they feel everyone around them has lost respect for them."
Brewer wasn't averse to such talk, either, according to court documents: Attias and Alarco once listened in to a phone call when their boss said, "Revenge is a dish best served cold."
Rubicon is seeking as much as £105 million from Attias and Alarco, who were to begin their defense tomorrow.