Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Hedge Fund Manager Who “Came Undone” is Headed to Prison

edited June 2021 in Other Investing
“On a summer Friday afternoon last year, hedge-fund manager Dan Kamensky broke bankruptcy laws. That evening on a recorded line, he pleaded with a banker to say the whole thing was a misunderstanding. “Maybe I should go to jail,” Mr. Kamensky said on the call.

Mr. Kamensky reports to federal prison on June 18. His hedge fund is in the process of closing, and a career that included stints at white-shoe law firm Simpson Thacher & Bartlett and storied hedge fund Paulson & Co. has been wrecked. “He came undone,” U.S. District Judge Denise Cote said during a court hearing on May 7.

Mr. Kamensky, 48 years old, worked in the high-stakes, high-conflict world of distressed investing, which aims to profit from companies teetering on the brink of or in bankruptcy. He launched his hedge fund, Marble Ridge, in 2015 with $20 million and was managing nearly $1 billion a few years later. His fund … was a relatively small player in the distressed market …

He was anxious, had difficulty sleeping, lost weight and had trouble concentrating at the office or at home … In 2017, Mr. Kamensky began working with a psychologist and a sleep specialist. He also consulted an executive coach … His efforts to control his emotions began to unravel in a bitter fight over struggling luxury-goods retailer Neiman Marcus Group Ltd.”


Thought maybe @Junkster would enjoy this story.

Excerpted / edited for brevity from The Wall Street Journal, June 14, 2021

https://www.wsj.com/articles/hedge-fund-manager-who-came-undone-is-headed-to-prison-11623490201
Sign In or Register to comment.