Tuesday, 25 October 2016
Last updated 4 hours ago
Oct 16 2013 | 11:01am ET
The owners of the New York Mets, among the largest victims of the Bernard Madoff Ponzi scheme, are out of the hedge fund business.
Fred Wilpon and Saul Katz have sold their stakes in Sterling Stamos Capital Management to firm founder Peter Stamos. Stamos has also reacquired Bank of America Merrill Lynch's 50% non-controlling stake, which the bank bought in 2007.
Terms of the deal were not disclosed.
Wilpon and Katz seeded Sterling Stamos, which has been renamed Stamos Capital Partners, in 2002, with Merrill coming on board to market the firm's funds in 2004. The Mets owners will remain investors in the hedge fund.
"BofA is getting rid of all these peripheral operations," Julian Rundle, chief investment officer at Dorset Management, told Bloomberg News. "Stamos himself probably figured this was an attractive time" to buy out his partners.
"We believe that it is in the best interest of our funds, fund investors and managed-account clients for the firm's management team to own a significant majority of the firm's equity," Stamos said in a Sept. 17 regulatory filing. "Although we have had a long relationship with each of the departing investors," the change will "not affect how we manage the investment of the funds."
Stamos, a former chief of staff to former U.S. Senator and presidential candidate Bill Bradley, worked at McKinsey & Co. before teaming up with Wilpon and Katz.