One of the strongest platforms at Farallon Capital Management is losing its top talent.
Four members of the value team at Tom Steyer’s shop are leaving to launch their own fund, according to a letter the firm sent to investors.
The departing executives are Bill Duhamel, Jason Moment, Ashish Pant and Rich Voon. Farallon’s value team is understood to have performed well, and value equities represent about 8% of Farallon’s assets under management.
Andrew Spokes, co-managing partner of the firm, will be running the group. Spokes and Steyer are co-chief investment officers of Farallon. Spokes joined Farallon in 1997 and in 2005 co-founded Noonday Global Management, which was formed when Farallon’s offices in London, Singapore and Charlotte began operating as a separate but related entity within Farallon. Noonday is being reintegrated back into Farallon.
Farallon, which now manages $20.66 billion, has lost 43% of its assets over the last two years following a tough 2008. The firm lost 36% that year in its flagship Farallon Capital Partners vehicle and suspended redemption requests after they reached the firm’s 25% fund-level gate, leading Farallon to create a liquidation trust to handle the gradual sale of redeeming investors’ interests in the fund.
Investors say the assets in the liquidating trust have rebounded, and Farallon has returned capital to investors, though there are still some 2009 profits in the trust that are being distributed.
Farallon rebounded strongly in 2009. Farallon Capital Partners, founded in March 1986, returned 25.5%, and its offshore version, founded in September 1987, returned 32.5%. But despite those gains, the firm’s funds are still under their high-water mark.
Farallon Capital Partners has returned 14% since inception, compared with 9.3% for the S&P 500, while the offshore fund returned 11.5% since inception, compared with 8.1% for the S&P 500.
A spokesman for Farallon declined to comment
—Amanda Cantrell