Partners And Cash: And Away They Go

It sounds like a hedge fund firm's worst nightmare: Two top partners leave with their clients tagging along, and their assets trailing behind them. That, reportsThe Wall Street Journal, is the situation facingInternational Management Associates, as Chief Operating OfficerNelson Keith Bond和财务总监Fitz Harper, both anesthesiologists, recently split. Not exactly what the hedge fund firm ordered, as it seems, according to theJournal, the Atlanta-based firm already has seen the depletion of $34 million of its $184 million AUM, with more likely on the way. IMA reportedly had been doing well, with its flagshipTaurusfund boasting returns of 25% annualized returns for the five years ending 2004.

Firm founder and CEOKirk Wrighttold theJournal, "We have been dealing with several clients looking for large redemptions, and we're trying to handle it so as not to adversely affect smaller clients."

He wouldn't disclose how much IMA was in danger of losing, but said it would likely be more than 20% of its assets. Already, clients reportedly are complaining about delays in getting their money, partly caused because of year-end accounting that first must be completed. "I think we have a serious issue on the table with principals defecting and trying to take clients with them," Wright said.

What went wrong at Wright's firm is not clear. IMA reportedly is in discussions about the situation with theSecurities and Exchange Commission.