Ex-IMF Chief Strauss-Kahn To Launch Hedge Fund

Mar 20 2014 | 1:03pm ET

Dominique Strauss-Kahn, the disgraced former International Monetary Fund chief, is moving from policymaking into money management, with plans for a US$2 billion global macro hedge fund.

Strauss-Kahn set up LSK & Partners in Luxembourg with banker Thierry Lucas last year. The firm’s DSK Global Investment Fund will avoid leverage and complex derivatives, LSK Chief Operating Officer Mohamed Zeidan told The New York Times. The fund will instead rely on “the expertise we have in following economic movements, and translate that into profitable trades.”

Strauss-Kahn’s ability to find such trades “should speak for themselves,” Zeidan added. Strauss-Kahn is currently in China, meeting with potential investors, he said.

In addition to Strauss-Kahn, Lucas and Zeidan, the fund will feature Strauss-Kahn’s daughter, Vanessa, as head of research. Like her father, Vanessa Strauss-Kahn has a Ph.D. in economics.

The fund is awaiting regulatory approval.

Strauss-Kahn, widely seen as a favorite in the 2012 French presidential elections, resigned from the IMF in 2011, after his arrest for allegedly sexually assaulting a maid in a New York hotel room. Those charges were dropped after police determined that his accuser had lied, but Strauss-Kahn has since been accused of other instances of rape and attempted rape, and was formally charged with “aggravated pimping” in France last year.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...