NEW YORK (HedgeWorld.com)–After failing to negotiate contracts with its event-driven investment team, John A. Levin & Co. Inc. said in a regulatory filing that it will wind up the funds, returning assets to investors.
As of June 30, Levin's event-driven funds represent 17% of the firm's US$12.4 billion in assets and their performance for the first six months of the year represented 44% of the firm's advisory revenue, according to an 8-K report Levin filed with the Securities and Exchange Commission on Oct. 18.
Levin was unable to come to terms on a compensation package for managers Frank Rango and Henry Levin. As a result, Levin President and Chief Executive John C. Siciliano said both men were expected to leave the firm, along with their investment teams.
Mr. Rango is the co-senior portfolio manager for the Purchase Associates LP fund and senior portfolio manager for the Purchase Associates II LP fund, both event-driven merger arbitrage funds. Mr. Levin is co-senior portfolio manager for the Purchase Associates LP fund.
"The decision to wind up the funds was made following negotiations with all key event-driven investment personnel regarding compensation arrangements going forward," Mr. Siciliano said in a statement. "While we are disappointed that we were not able to reach an agreement with any of them in a timely manner, the firm remains committed to offering a range of alternative investment strategies to our clients. We appreciate the efforts made over many years by Frank Rango, Henry Levin and their entire investment team, as they played a key role in establishing our firm as a well-known provider of alternative investment strategies."
