Flo-Ho Is Gone, And You Can't Have Your Money, For One Year

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The resignation of Florian Homm, the German hedge fund manager who many a media outlet have taking to describing as “colourful,” which a colleague in the field claims is a kind—though less apt—displacement of “bat shit fucking insane,” has been “not so good” for Absolute Capital Management. Following Homm’s departure, announced yesterday in a letter to shareholders to the surprise of everyone, shares in the company dropped 69.6% (271.5p to 118.5p), knocking nearly £190m off its market value. Today Ab. sunk another 48%, on the news that investors will not be privy to their money from eight equities funds (previously) managed by Homm, for one year.
A spokesman for Absolute registered shock over Flo’s decision to leave the firm, noting that the board is “completely perplexed by his actions. We can’t quite understand why he would go about it in this way.”
According to Homm, there’d been a bit of a disagreement between him and the board regarding his insistence that they should all take one for the team, and sacrifice their bonuses and compensation, as well as pay top-dollar to retain competent managers. The difference in opinion was apparently insurmountable, and enough to cause Big H to walk away from his day to day roll over seeing Absolute’s three best-named funds: European Catalyst, Activist Value, and Octane. Yes, Octane. Sounds crazy to us, too, but that’s a German for you. (Incidentally, Homm was shot in the chest in Caracas last year, and been fined twice for market manipulation.)
Though he’ll no longer have a desk at the office, Homm will still be invited to family barbeques, as he retains a 19% stake in the company. Could be awkward, though.
Absolute Capital Halts Redemptions After Homm Quits [Bloomberg]
Shock resignation at hedge fund [The Guardian]
Absolute Capital Halts Hedge-Fund Redemptions [WSJ]

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