The axe falls at hedge funds

Mon Dec 15, 2008

High-water marks be damned: Firms are paring back employees to stay in the game

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...

ISSN: 2151-1845 / CDC10004H

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