Major Shakeup at Hedge Fund Chieftain Investment Management
Monday, November 23, 2009 : PermalinkWest Palm Beach (HedgeCo.net) – Several key leaders of investment manager Chieftain Capital Management will be parting ways, according to a story published in the Wall Street Journal. Personality conflicts appear to strike at the heart of the breakup. According to a letter sent from Chieftain’s management to its investors, differences amongst the firm’s founders, Glenn Greenberg and John Shapiro, as well as partners Tom Stern and Joshua Slocum necessitated the split.
Mr. Greenberg, who made headlines two years ago for his spat with the management of cable provider Comcast Corp., plans to stay at the firm and rename it Brave Warrior Advisors. Meanwhile, Shapiro, Stern, and Slocum intend to launch a new firm on January 1, retaining the original Chieftain Capital Management name. Chieftain found success over the past two decades by largely ignoring the “status quo” practices of Wall Street. Management shied away from excessive communication with clients, preferring secrecy over marketing exposure. Also, the firm showed a preference for investing in highly-concentrated positions, ignoring suggestions for diversification.
Focusing on a “value” strategy, the firm has averaged returns of 18% before fees. Sources suggest that this year’s returns are roughly in line with the broader market.
Alex Thompson
Contributing Editor for HedgeCo.net
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