Mickey Harley's four tumultuous years with Mellon Financial
form a cautionary tale
By Josh Friedlander
It's hard to resist the siren song of money, whether in the
form of an IPO or by selling out to a financial institution.
But for those hedge fund managers tempted by the big bucks, one
cautionary tale is the ill-fated union of Mellon Financial and
HBV Capital Management.
Mellon, in an undisclosed all-cash deal, bought William
"Mickey" Harley's hedge fund firm in 2002 in an alliance that
looked perfectly complementary. Uneven performance, the closure
of several funds, and disagreements over sales strategies led
the couple to split a mere four years later, with Harley
ponying up an undisclosed amount in December to buy back his
firm - which was barely larger than when he sold it.
It hardly seems worth all the anguish. During the course of
their troubled marriage, the assets of Harley's firm...