One time high-flying arbitrage group finds itself besieged
on all sides
George Hall is a man with many interests, a thirst for
knowledge and a luxury yacht berthed off Manhattan that is big
enough to accommodate lavish parties and political fundraisers.
Today, that glamour must seem a long way off as Hall rolls up
his sleeves and battles to save the company that he has spent
12 years building into one of the premier fixed-income and
arbitrage outfits in the world. At its peak, the firm had $10
billion of assets. Now it is besieged on all sides.
A run of poor performance started the problems. This was
followed by the departure of a number of portfolio managers and
damaging details of one of their rifts with Hall being filed in
a New York court. Unsettled investors started to redeem. Then
one disgruntled employee carried out the coup de grace