As we’ve seen time and again, succession plans at hedge funds closely identified with their founders are tricky things to pull off. Munib Islam knows this all too well, having been around Highbridge Capital Management at the time one founder was leaving and another was very much not. And now, he’s relearned the lesson.
Billionaire investor Daniel Loeb is taking back the reins as sole chief investment officer at his hedge fund Third Point LLC, less than one year after he appointed long-time colleague Munib Islam to be his co-chief investment officer, according to a letter the firm sent its investors…. Islam, 46, will retire from New York-based Third Point but will continue to advise it in a consulting capacity until the end of the year.
The issue, it seems, is not Loeb’s famously easy-going, collegial demeanor, which Islam would have seen close up working with his boss on matters Sony and Nestlé. Instead, like so many before him, Loeb just can’t let go, especially since he’s the only person who could possibly navigate the current crisis, as his recent judgement proves so definitively.
Loeb wrote that he is excited about “investing in this period of change and turmoil….” While people close to the firm say there was no break between the men, Loeb felt strongly that this crisis demanded his leadership, alone….
Third Point is down 10.4% for 2020…