Looking back on Jos Shaver's SAC lift-out and Third Point's SEC scrutiny

By Rob Copeland

Tue Aug 20, 2013

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Absolute Return also revisits the liquidation of Plural Investments.


One year ago

>> James "Jos" Shaver neared the launch of Electron Capital Management after leaving SAC Capital Advisors in the spring.

Electron began trading its utility and infrastructure-focused long/short strategy this March, right on schedule. It is up 2.41% from March through the end of July, according to an investor communication. The fund managed $90 million as of midyear, according to the Absolute Return midyear new funds survey. Discounted fees of 1%/10% (from 1.5%/20%) are available until the firm reaches $100 million in commitments, a person familiar with its marketing confirmed.

Shaver's partners include former SAC colleagues Neil Choi, Peter Suozzo and Ran Zhaou, a pitchbook shows. Former Kingbrook Partners chief financial officer Aaron Keller is CFO and former Platinum Partners director of marketing and business development Greg Zaffiro is managing director in charge of marketing and investor relations.

Zaffiro declined to comment on behalf of the firm.

See more: New hedge funds I Absent mega launches, new funds fall short in first half

>> Matt Grossman, a former Institutional Investor Hedge Fund Rising Star, liquidated his firm, Plural Investments, at end of its initial four-year lockup period. "Both business and personal reasons have influenced my decision," Grossman wrote to investors at the time ( full story here).

Grossman now runs ALG Investment Management, a family office in Greenwich, Conn that invests in real estate and private equity, he confirmed.

Other former members of the Plural team have scattered among the hedge fund industry. Chief trading officer Brandon Levin landed at JANA Partners in a similar role; marketing director Amy Zipper ended at Jason Karp's Tourbillon Capital Partners; analyst Cara Maxworthy landed at Balyasny Asset Management; and analyst Ewing Lloyd will work for former Pennant Capital Management partner Matt Hagerty's upcoming launch.

See also: Alson-spinout Estekene liquidates

Five years ago

>> Dan Loeb's Third Point told investors that the SEC was investigating its communications with portfolio managers at other hedge funds. At the time, Loeb argued that the conversations helped Third Point refine its investment and trading ideas.

Two years later, the SEC dropped the investigation and issued a closing letter stating that no further action would be taken, Loeb wrote to investors. "We remain registered with the SEC, and believe that the exacting standards of compliance to which we adhere are consistent with industry best practices," he wrote.

Now managing $13.3 billion overall firm wide, Third Point's flagship event driven fund is up 15.9% through the end of July, compared with an 8.09% gain for the Absolute Return Event Driven Index.

See also: George Clooney attacks Dan Loeb I Kempner, Loeb get down with Billy Joel I Dan Loeb cancels pension confab appearance amid potential protests

ISSN: 2151-1845 / CDC10004H