From the mailbag:
Jon Ezrow, who was head of HY capital markets is leaving GoldenTree this week. This marks another of many high profile resignations at the firm in the last 24 months and calls into question the leadership of the firm. Since 2007, many of the top analysts and PMs have resigned from the firm or left to pursue other opportunities (AKA quit).
- Tom Shandell (Institutional Investor Magazine All-Star, ranked number one US gaming analyst)
- David Allen (Institutional Investor All-Star, ranked number one US Media Analyst)
- Andrew Susser (Institutional Investor All-Star, ranked number one lodging analyst)
- Oliver Wriedt (Head of Marketing)
- Wilfred Finnegan (Head of Sourcing)
- Larry McCarthy (Head of risk management, former Lehman Brothers star)
- Eduardo Cabral (now at Goldman)
- Raul Ramirez (left for Avenue)
Additionally over 10 other analysts have left, making the turnover one of the highest for any hedge fund. Combined with Steve Tananbaum's poor performance in 2008 due to his strategy of going long the loan market with leverage in the Spring of 2008 (See his Barron's interview from May 2008 called: Leveraged Loans: Ready for Takeoff!") calls into question whether anyone will stick around since he is known to be one of the worst managers on the street. His flagship credit fund was down 70% and investors have been blocked from taking out money.
Once the gates are opened, the exodus of money will match the talent. Without top analysts, why would anyone stick around with this manager? Is Steve going to manage the whole portfolio himself and continue to be an "art maven"?
Earlier: Not So Golden After All?