WEST PALM BEACH, FL (HEDGECO.NET) – The Clinton Group is reshuffling its executives following its recent pricing problems, which triggered investigations from the Securities and Exchange Commissionand the Commodities and Futures Trading Commission. Problems in the Clinton’s hedge funds began last October with the sudden resignation of senior trader Anthony Barkan. According to his resignationpapers, Barkan said he was concerned with securities� valuation strategies relating to pricing in some of the firm�s bond portfolios.
Such announcement raised some suspicion by government regulators leading to scrutinization of the firm�s records. Meanwhile investors pulled out significant assets from the firm, as its managements assets declined from about $5.5 billion total from its six hedge funds last year, to about $1.4 billion. One of Clinton hedge funds, its flagship Trinity Fund closed after it suffered a 21.5% loss in 2003. According to news reports, the company still has billions of assets in its collateralized and largely illiquid debt obligations.
The asset management company continues to lose assets, and three of its top executives were lost in the reshuffle efforts. However the company continues to embark on additional management initiatives, as it recently added merger arbitrage and distressed investing strategies.
The firm named its statistical arbitrage portfolio manager, Richard Cohen as its new chief investment officer while convertible arbitrage chief Michael Vacca became the new chief operating officer. Cohen and Vacca have both been with the company for a period of about six years. Earlier in April, the company announced that Rishin Roy, Thomas Schnepp and Seth Fischoff had departed from the firm.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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