AbCap Gets New CEO, Wins Argo Spin-Off OK

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.


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...