Monday, February 23, 2009

How To Get A Job When You Blow Up A Hedge Fund

Short answer - just go back to work for a mutual fund. Or at least that is what David Glancy did, when he decided to leave the treacherous world of hedge funds, in which he managed to plant a nice little frag grenade in the form of Andover Capital, and jumped back on the mutual fund wagon. On Thursday Putnam announced it was willing to receive the former Andoverite and Fidelitite with open arms, despite his shady recent track record. According to the press release:
[Glancy] will partner with Putnam's research teams to identify opportunities across the entire capital structure, focusing on equities while also including high-yield and bank debt. Glancy has special expertise in assessing undervalued, leveraged companies, which are companies that issue lower-quality debt or that otherwise have leveraged capital structures.

Glancy's previous venture, Andover Capital was a flop, which was down 6% in 2007, and was closed down in early 2008. However, David claims, the performance had nothing to do with his decision to close the fund, which was closed "for personal reasons." Putnam CEO Robert Reynolds seems to believe him:
David has built a stellar career delivering superior investment returns in undervalued companies. He brings us exceptional knowledge and expertise at a time of unprecedented market dislocation - and opportunity.

Glancy's reputation precedes him, when he generated positive returns as junk-bond manager for Fidelity in the late 90s before leaving in 2003. Ironically, Putnam, which recently announced it would eliminate 10% of its work force, was also hiring 4 other analysts (Shobha Frey, Lucas Klein, George Gianarikas and Vinay Shah) to complement their retention of Glancy and the firings of others. Sphere: Related Content
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