Tue, Mar 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Rubicon takes legal aim at hedge fund launch by former Co-CIO Attias

Thursday, August 04, 2011
Opalesque Industry Update – In early July Tim Attias, former co-chief investment officer of Rubicon Fund Management, announced he would launch Sata Partners along with Catherine Cripps former head of research at Man Investments. On Thursday this week, Rubicon Fund Management, Attias’ former employer announced that it has issued legal proceedings against both Attias and former fund manager Santiago Alarco.

According to a statement released by Rubicon, “The claim includes allegations that Alarco and Attias conspired and acted in breach of their covenants and fiduciary duties to Rubicon whilst still in its employ.”

eFinancialNews which reported the launch in early July said that Alarco was on garden leave from the firm, which typically means they are being paid and have agreed not to work, and are limited in their ability to join a competitor for a specific amount of time. The report said that Attias, Cripps and GAM declined to comment.

Aside from trying to prove that Rubicon should be awarded “Declaratory Relief, Injuncion and Damages and Account of profits and costs, the firm is also obviously feeling stung by the recent announcement of Attias’ launch (the Rubicon statement also seeks to correct media reports about the management of the funds that were included in announcements about Attias’ new firm).

In some of the launch stories Rubicon’s performance was reportedly “It returned 44% in 2008, 15% in 2009 and 14% last year, according to a person familiar with the situation.” In other stories “Under Attias’ watch, the Rubicon Global hedge fund delivered returns of 44% in 2008, 15% in 2009 and 14% in 2010, on assets of $1.65 billion.”

In today’s statement Rubicon says: “According to the Hedge Fund Intelligence Global Review, Rubicon Global Fund was the top performing Global Macro Fund for the three years from January 2008 to December 2010 with a total return over the three years of 91.23%.

The bulk of this return was obtained in 2008, which was a very difficult year for all investors. In 2008 Rubicon provided investors a return of 44.80%. Paul Brewer, CIO, provided two thirds of the 2008 return. Rubicon has provided investors a compound annual rate of return in excess of 13%.

The spokesman added, “Paul Brewer, the man who built Rubicon, is now very much back in the driving seat and is determined to protect the interests of investors and Rubicon’s reputation.”

Kirsten Bischoff

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie