The loss of a legendary founder can sink a fund, but
Deephaven is one of the few groups that has been through the
transition and emerged stronger
Don't believe anyone who tells you that the cult of
personality doesn't sell in the hedge fund business. Money
follows star portfolio managers, and is quick to leave when
they do. The same is true for firm founders. After all, it's
hard to imagine SAC minus Steve Cohen or Citadel without Ken
But the pre-eminence of these 'personalities' in hedge funds
is one of the key factors that is holding back
'institutionalization' because it is difficult to establish a
durable brand name when so much of the assets and perceived
success of the organization are tied to one person.
Unsurprisingly, few firms have outlasted their founders, but
one that may have cracked the formula is Minnesota-based
When Irvin Kessler, the man...