Hedge Fund Founder Quits Over Pay Dispute

Sep 18 2007 | 12:11pm ET

Florian Homm has resigned from Absolute Capital Management Holdings, the hedge fund he founded, sending shares of Swiss-based, London-listed and Spanish-run ACM into a tailspin, down upwards of 60%.

“I share a different investment and management philosophy from the current and prior management” of the firm, Homm, who last year survived a shooting in Venezuela, wrote in his parting shot. “The Board of ACMH did not agree with my arguments that ACMH needs to pay adequate compensation to retain top-level fund managers nor did they follow my lead in sacrificing personal bonuses and compensation, or in contributing ACMH shares to the funds.” 

According to Homm, he poured some €33 million (US$45.7 million) into ACM’s funds in an effort to steady them during the recent market turmoil. In addition, Homm said he has “forgone my bonus this year with the intention to share it with the many investment professionals” at the firm.

“As a result of my actions, those funds have ended up positive or neutral for the month,” he wrote.

Homm, who currently serves as co-chief investment officer of the firm, said his resignation becomes effective tomorrow.

The resignation reportedly took ACM executives by surprise.

Homm said he has no plans to found a competitor to ACM, and that he remains the firm’s largest shareholder.

“I hope that my leaving ACMH will force management to realize that its most important asset are its highly-skilled investment professionals,” he wrote.

Homm's Resignation Letter


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of