Four former employees of Tom Hudson’s Pirate Capital have banded together to launch a new fund. Late last summer several analysts and other Pirate employees left the fund after coming to the conclusion that working for Tom Hudson kind of sucked.

Two former analysts and a portfolio manager from activist hedge fund Pirate capital have joined a new hedge fund started by another ex-Pirate colleague. Andrew Stotland, a former marketer at Tom Hudson’s Pirate Capital, formed FrontFour Capital Group and launched the event-driven fund at the beginning of the month.
Zachary George and David Lorber, former analysts at Pirate, and Carl Klein, the firm’s former fixed income portfolio manager, have now joined FrontFour Capital Management. The new hedge fund is expected to launch in the coming months. Its seed investment came from Weston-Atlas Partners, a joint venture between London-based alternative asset management firm Atlas capital Group and Weston Capital.
“New York-based FrontFour employs an event-driven strategy, investing across the capital structure, pairing fundamental analysis with the identification of specific catalysts,” Stotland said. He left Pirate Capital in August. He was responsible for raising the majority of the firms assets. George, Lorber and Klein were part of a group of staff members that left Pirate in September. They departed just as Pirate saw its performance fall below its historically high returns and the firm closed its funds to new investors so that it could control its overall growth. They are now principals at the new hedge fund.

ex-Pirate’s Launch new Hedge Fund [HedgeCo.Net]

Comments (13)

  1. Posted by Cap'n Jack | January 9, 2007 at 10:01 AM

    Arrr, the scurvy castaways be livin’ to sail the high seas once again! Arrr!

  2. Posted by investor | January 9, 2007 at 10:12 AM

    Should be interesting to see if they can raise any money..

  3. Posted by joe | January 9, 2007 at 11:19 AM

    thank god. I was hoping Zach George would re-emerge somewhere so I could again hope for his demise. Douchetard…

  4. Posted by investor1 | January 9, 2007 at 12:34 PM

    should make a lot of money

  5. Posted by icup | January 9, 2007 at 12:53 PM

    I like “identification of specific catalysts” (as opposed to random or general catalysts..) I wonder if the specific catalysts will involve buying 5% of the equity then having a greenmail temper-tantrum?

  6. Posted by Lee D | January 9, 2007 at 1:53 PM

    Roger that. “identification of specific catalysts” is about as clever a strategy as “making money through not losing money.”

  7. Posted by Kim | January 9, 2007 at 5:18 PM

    I need to be honest, I think Zach George is an 12 out of 10, what a hottie. I’d give these guys money just so I could meet with him once a year…. :-)

  8. Posted by Scooter | January 17, 2007 at 12:57 AM

    Zach, you douche. Quit posting self-praise under the name Kim.

  9. Posted by Zach | January 30, 2007 at 6:22 AM

    I have a little penis!

  10. Posted by Don Juan | February 1, 2007 at 8:54 AM

    There’s nothing wrond with that….

  11. Posted by tommy h. | February 2, 2007 at 3:01 PM

    zach, come back!!…i don’t like being the biggest douchebag in the office…i miss you …

  12. Posted by diddleburr | July 16, 2007 at 9:00 AM

    Bold move, but what was so bad about working for Tom Hudson? The information could be very timely for me.

  13. Posted by Jason Genetics | August 25, 2007 at 12:12 AM

    least they had the balls to up and make something on their own two feet.

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