Prospect Asset Management To Cut 40% Of Staff

Dec 4 2008 | 10:30am ET

A Japanese real estate hedge fund shop plans to cut almost half of its workforce as it desperately struggles to stay afloat.

Honolulu-based Prospect Asset Management Chairman Curtis Freeze said the firm’s headcount would drop to about 30 over the next few months, Bloomberg News reports. The firm employed more than 50 people two years ago. The cost-cutting moves come as Prospect has been battered by the declining Japanese property market.

Unfortunately for Prospect’s remaining 30 staffers, Freeze says the firm, which has seen its assets under management fall by 60% to $1 billion—and its hedge fund fall by 99% to just $6 million—is not out of the woods just yet.

“I will know whether Prospect is going to bottom or is going to have another year of pain” after the results of Tokyo-based real estate investment trust New City Residence Investment Corp.’s bankruptcy become clearer, Freeze said. Prospect owns a 5.49% stake in the REIT. “Depending on where these New City assets trade, we will decide whether I attract new money or whether things are going to spiral down further.”


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.