Hedge fund-of-funds manager Cadogan Management is closing and transferring many of its funds and staff to Cantor Fitzgerald, according to a client letter obtained by P&I Daily.
The move comes as a result of an “unexpectedly high number of net redemptions,” according to the letter.
“Although given the liquidity of our investments, the redemptions were not sufficient to destabilize our portfolios, they did destabilize the perceptions of many of our clients and their advisers,” according to the letter.
Cantor Fitzgerald confirmed in a news release that the boards of directors of “certain Cadogan-managed investment vehicles have approved investment management agreements under which Cantor Fitzgerald Investment Advisors (CIFA) has been or is expected to be engaged as new manager of the funds.” A phone call to Cantor Fitzgerald spokeswoman Sandra Lee was not returned by press time.
According to the letter, several Cadogan staffers will move to Cantor Fitzgerald at the end of the year. They include John Trammell , CEO of Cadogan Management, as co-head of the effort; Pete Hommeyer, portfolio manager; Clint Grady, risk manager; Tony Rosenthal, key analyst; Dana Volfing, head of operational due diligence; Marlena Kaplan, CFO; Lawrence Becerra, consultant overseeing global sales and marketing; Jess Palahicky, head of client service; and Paul Isaac, advisory board member and consultant.
Further information about the transfer could not be learned by press time, and Mr. Trammell did not return a phone call seeking comment.
Christine Williamson contributed to this story.