Is Dan Zwirn Long Term Greedy?
Is Dan Zwirn Long Term Greedy?
The phrase has positive connotations; it was a hallmark of the old Goldman Sachs, whereby they sacrificed short term profits in the name of building long-term relationships.
Wall Street was a better place when we were all long-term greedy, and now it appears to be making a comeback.
Daniel Zwirn, a once-highflying hedge-fund manager whose fund imploded back in February, has been dipping into his own pocket over the past several months to keep the lights on at his firm D.B. Zwirn & Co.
According to sources, Zwirn has been writing checks totaling as much as $50 million to cover the costs of staying in the Midtown office he leases at 745 Fifth Avenue, as well as to pay vendors and employees as he unwinds his $5 billion hedge fund...... The manager has recently tapped into deferred compensation, including $12.6 million of his own money, to fund the firm’s operations, according to Hedge Fund Alert. By doing so, it ensures his investors get their money back.
Despite the situation, Zwirn has generated goodwill with some of his investors, leading him to consider launching a new fund. However, it’s unclear whether that plan will get off the ground given the carnage in the hedge-fund world. New York Post
It is unfortunate more people do not take this route; I have heard too many stories of hedge fund managers screwing their analysts who produced outsized returns, in some cases firing them before bonuses were paid in years gone by.
Zwirn actions should curry favor with his clients longer term, and set the stage for a comeback at some point, providing he can put accounting issues in the rear view mirror.
His actions sure beat a stick in the eye.
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D.B. ZWIRN HEAD PAYS $50M OUT OF POCKET
New York Post
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.
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