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

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

When Less is More: The Case for Concentrated Equity Strategies

Jun 1 2015 | 7:59am ET

The conventional wisdom is that wide diversification is the “holy grail,” as...

 

Sponsored Content

Editor's Note