Billionaire manager Glenn Dubin is retiring from running his hedge fund to focus on direct investing through his family office.
Mr. Dubin, 62, is turning over management of the $1 billion Engineers Gate to Greg Eisner, he said in an internal memo sent Jan. 24 and seen by Bloomberg. He will step down from the firm at the end of the month.
"After 40 years, I am looking forward to transitioning from being an 'Investment Manager' to an 'Investor,'" Dubin wrote in the memo.
The announcement comes five months after a previously sealed deposition drew the billionaire into the scandal surrounding the late financier Jeffrey Epstein. A woman who said she'd been Epstein's "sex slave" years earlier claimed she'd been forced into an encounter with Mr. Dubin. He and his wife promptly denounced the allegations as "demonstrably false."
Reuters earlier reported on Mr. Dubin's retirement. He told the news service that his decision was unrelated to the attention on his relationship with Mr. Epstein. He also said the news coverage surrounding it was "false" and upsetting.
Mr. Dubin is the latest hedge fund veteran to step away from the business. Louis Bacon of Moore Capital Management and Redwood Capital Management's Jonathan Kolatch both recently said they were ending their decades-long careers managing client money.
Mr. Dubin co-founded hedge fund Highbridge Capital Management in 1992, and sold a majority stake in the firm a dozen years later to J.P. Morgan Chase & Co. He exited that firm in 2013, and founded his family office and quantitative hedge fund Engineers Gate a short while later.
Engineers Gate's average annual gains since inception were 5% after fees, Bloomberg reported in October.
Canada Pension Plan Investment Board, one of Engineers Gate's five investors, had grown frustrated with its low returns and was scrutinizing its investment, people familiar with the matter said in October. The pension fund declined to comment.
