Friday, 28 August 2015
Last updated 4 hours ago
Aug 19 2009 | 2:42am ET
It seems hedge fund honcho Jonathan Dawson doesn’t play nice. The Dawson-Herman Capital Management founder is losing his third partner in a decade, and while the firm will go on, its funds will not.
Russell Herman, CEO of the Southport, Conn.-based firm, told investors last week that he was closing the firm’s Southport Millennium funds, which took a bath last year, its flagship falling more than 35%. Dealbreaker.com reports that the decision to liquidate the funds stems from differences between Dawson and Herman.
The two cannot even agree on how the funds have done. Herman says they’re up just 5.9% since inception, but Dawson says the figure is actually 12.3%, The New York Times reports.
“We have not been able to build the portfolios with high conviction ideas and themes to the degree that is satisfactory to me and in line with our historical standards,” Herman wrote to investors.
The funds should be liquidated by the end of September.
Dawson plans to continue managing money after Herman’s departure, and the firm will continue to employ 26, laying off six.
What is now Dawson-Herman started life as Dawson-Samberg Capital Management. But Arthur Samberg spun out his funds as Pequot Capital Management in 1999. Dawson then team up with Anthony Giammalva, but they split in 2004.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…