The Pirate Capital saga continues. Earlier this week, at least seven staffers jumped ship for comfortable ports.
Today Bloomberg is reporting that at least some of the departed are not happy with the letter from fund founder Thomas Hudson explaining the losses.
Hudson disclosed yesterday that analysts Zachary George and David Lorber resigned on Sept. 26, and Carl Klein, the firm's fixed-income portfolio manager, quit the next day. Hudson then fired analysts David Muccia and Matthew Goldfarb, according to his letter.
The letter didn't give a reason for the staff departures and Hudson declined to comment. Stephanie Tran, Peter Desloge, Glenn Haberfield and Chadd Kirk are still at Pirate Capital working with Hudson.
"What Hudson wrote in the letter to investors is a blatant mischaracterization of the circumstances of our departure,'' Goldfarb and Muccia said yesterday in a telephone interview. "We are currently exploring appropriate legal remedies.
To be honest, we're kind of disapointed. You still haven't sent us the Pirate Capital letter. Look people, this relationship isn't going to work if you aren't willing give at least a little. Send stuff to tips (at) dealbreaker (dot) com. We'll totally protect your anonymity.
Pirate Capital's Hudson Says He's Determined to Improve Returns [Bloomberg]