Wednesday, 31 August 2016
Last updated 30 min ago
Jun 16 2008 | 2:33pm ET
Troubled hedge fund shop Absolute Capital Management has named a new CEO as its investors approved the spin-off of its Argo Capital Management emerging markets debt unit, which it acquired in January 2007.
Glenn Kennedy, who joined AbCap in 2006 as general counsel, will take the reins from Jonathan Treacher. Kennedy is the firm’s third CEO in less than a year.
Treacher took over as CEO in August, after Sean Ewing resigned just before the abrupt resignation of the firm’s founder, and a slew of damaging revelations, rocked AbCap.
The firm’s shares plummeted and investors raced for the doors after co-founder Florian Homm, who had invested much of the firm’s assets in illiquid pink sheets, resigned in September. AbCap blocked redemptions and pushed through a fund reorganization to keep itself afloat, and bid farewell to the managers of its German fund.
Treacher said the mess was so great, he has only taken eight days off—including weekends and holidays—since he took over the firm.
“People recognize we have a future,” Treacher told Financial News. “We have been hammered, we are battered and bruised, but we have survived the storm.”
The firm also said that its shareholders had given the go-ahead to the Argo spin-off, which it hopes will allow that firm to escape the taint of the AbCap name. AbCap said it expects to distribute Argo shares to its stockholders by the end of the month.