Dawson-Herman Closing Funds, Parting Ways

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...