Many top funds are finding it difficult to hold on to a
The transition from adolescent entrepreneurial business to
adult institution is proving more difficult for many hedge fund
managers than they expected. Nowhere is this more in evidence
than in the difficulty that many of the independent-minded
hedge fund founders are having at hiring or holding onto the
right senior business executives. At some funds, turnover in
these jobs has been high, and at others, the founders have
given up and eliminated the executive posts entirely.
The most obvious example of this is $10.7 billion Citadel
Investment, which is still without a chief operating officer
after losing its fourth in four years this July. John Simpson,
a former vice chairman at Dresdner Kleinwort's investment
banking division, and a personal friend of Griffin's, left
Citadel after less than a month in the job. His departure
followed soon after that...