Moore Capital hedge fund made a dismal performance this year, so much so that it's President, Louis Bacon, is returning $2 billion to his investors. The September 13 report by Bloomberg on Moore Capital Management LLC, highlighted that, and documented how the $15 billion hedge fund firm cut more than a dozen investment jobs as it restructures one of its equity teams. This, according to three people with knowledge of the matter who believe that the changes were made due to the companys bad performance.
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| Zack Bacon III |
The Hedge Fund manager, having much concern as a result of the large reduction in headcounts and the possible damage it could bring to his business, hired his older brother, Zack Hampton Bacon III, in February to oversee strategic planning.
The older Bacon was also responsible for making the cuts to staff, despite the fact that many of them had been working for his younger brother, 56, for years. A close source revealed this just after Bacon made the announcement, telling his clients the same month that he would be returning $2 billion, or about 24 percent of his main fund to investors. Bacon claimed it may be too big for him to generate returns in line with historic profits as "liquidity and opportunities have become constrained".
The Moore firm Bacon founded in 1989 with some 208 employees invloved in investment-advisory roles, including research, calls for his brother Zack to deal with the resturcturing cutting down a 426 staff that include clerical workers.
What also appears to be a more critical matter for Bacon are his reported legal matters in the Bahamas with land disputes. There are also pressing concerns from the Bahamian police about the number of dead bodies found at and near Bacons Point House home in Lyford Cay.
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| Louis Bacon |
Members of the Bahamian media are still seeking answers from the police commissioner on the death of Dan Tuckfield - Bacons former property manager - who was found dead a few years ago in a jacuzzi. There were said to be at least ten unguarded hunting guns that also had caused for the police commissioner to seek the amend the laws on how many guns foreign residents could have. Concerns also arose from a recent dead body found again in May of this year, believed to be a caucasian found on Bacons Point House beach.
It has also been reported that the Hedge Fund giant is very nervous because the Bahamian media have been seeking to press members of Bacon's staff on the series of events taking place at his home in Lyford Cay.
As a result, is is being rumoured that Louis Bacon will also have his older brother Zack spend some time in the Bahamas to straighten out these plaguing matters with Bacon's staff of about 10 to 20. The majority of Bacon's Bahamian staff is said to be of Haitian descent - another matter that seems to raise a serious concern for the Bahamian Immigration Department knowing that the country is seriously challenged with the huge number of foreign nationals in such a small nation of about 350,000 faced with a big unemployment problem.
With Bacon beng faced with his problems, which seem to be mushrooming in the financial market as well as in social and legal matters in the Bahamas, it seems obvious why he is now calling on the bigger and supposedly wiser brother Zack to try and rescue and possibly redeem Bacon from his unsavory business transactions and unkind behaviour.
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