Highbridge’s CEO Glenn Dubin had some bad news for the hedge fund’s event-driven unit on Thursday afternoon.The entire team has been sacked, according to Dealbreaker.
On a conference call Dubin told other staffers it had been “a difficult couple of weeks for myself and other senior members of the team,” with the layoffs of Jason Erslaw’s team “particularly difficult” because the desk performed well.
Apparently the decision was not a reflection on the group’s output but was more to do with the fact that there was too much overlap with other teams in the hedge fund.
Our view is a more strategic one that the area of event-driven investing falls into many of the other areas that we’re engaged in in fundamental investing, whether it be in the long/short team’s focus on individual stocks from a fundamental perspective or some of the event-driven investing that’s found its way into the convertible book and the capital structure book and the credit opportunities business.
According to FinAlternatives, Dubin said he was sure Erslaw and his team would be “much better served as individuals and professionals to be able to develop that capability at organisations, frankly, that don’t have fundamental long/short investing and don’t have credit opportunities capability like we do.”