marks be damned: Firms are paring back employees to stay in the
By Josh Friedlander
SAC Capital Advisors is doing it. Citadel Investment Group
is, too. Other marquee names, such as
Perry Capital, Trafelet Delta Funds, and Chilton Investment
Co., once masters of the universe, are now engaged in the
mundane task of managing costs by firing staff, while firms
such as Glenview Capital Management are desperately working to
retain employees by paying bonuses using management-fee
revenue. At D.B. Zwirn & Co., founder Dan Zwirn has been
reduced to covering costs and bonuses by dipping into his own
pocket to the tune of $50 million. All around, at formerly
jubilant drinks nights and on the morning lines at Starbucks,
there is the hushed talk of layoffs.
"Hedge fund layoffs" is not a phrase one is used to seeing,
the way one might read of "auto industry layoffs," and...