Dillon Read Chiefs Out At Firm They Co-Founded

Jul 23 2012 | 11:22am ET

The two top executives at UBS' disastrous hedge fund foray Dillon Read Capital Management have left the investment boutique they launched after Dillon Read's collapse.

John Costas, who led Dillon Read, and Michael Hutchins, the hedge fund's chief investment officer, have left PrinceRidge, the fixed-income shop they co-founded in 2009. The head of the firm that bought a majority stake in the firm has taken the helm.

Institutional Financial Markets CEO Daniel Cohen was named chairman and CEO of PrinceRidge. IFM invested $45 million in PrinceRidge last year.

"IFMI and the PrinceRidge board of managers believe this management transition is in the best interest of the company's shareholders, clients and employees," Cohen said.

Both Costas and Hutchins have sold their partnership interests in PrinceRidge for $4.1 million each, IFM said. The two have entered into separation agreements with the firm, IFM said in a regulatory filing.

Costas, Hutchins and former Dillon Read trader Matthew Johnson set up the firm three years ago, two years after UBS pulled the plug on Dillon Read after some $3 billion in losses.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note