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Alexander Klabin will be leaving the $6.9 billion Senator to
"pursue a more entrepreneurial approach to investing," the firm
wrote in a letter to investors. Portions of the letter were read
by investors to Reuters.
Douglas Silverman, with whom Klabin cofounded the firm 12 years
ago, will stay on and run it alongside a senior executive who is
being promoted. Jay Bharadwa, who currently runs Senator's
credit portfolio, will become co-chief investment officer, the
firm said.
Silverman and Klabin, who graduated from Princeton University,
worked together at York Capital Management and then joined
forces to found Senator in 2008 with help from Blackstone Group
Inc, the world's biggest hedge fund investor.
Klabin's departure was first reported by the Wall Street
Journal.
The pair had spent a year considering options after people who
knew them said tensions had been rising for some time, said two
sources who were prohibited from speaking about the matter
publicly.
A representative for Senator did not immediately respond to a
request for comment. Klabin could not immediately be reached for
comment.
In the rough and tumble hedge fund industry, Senator stood out
for its strong performance which began with a 60% return the
year after the pair launched operations and ended with returns
of between 18.6% and 20.3% after fees in 2019, a person familiar
with the returns said. There was a loss in 2018.
A number of other employees are also leaving, including Sam
Siegal, who headed healthcare investments and is going to
Citadel, and investor relations executive Zlata Gleason who is
moving to Lone Pine Capital.
(Reporting by Svea Herbst-Bayliss in Boston; Additional
reporting by Lawrence Delevingne in New York; Editing by Matthew
Lewis)
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