A Year Later, BKF Breathing Its Last

Piece by piece,BKF Capital, which just a year ago had $13 billion in assets under management, is almost out of assets but not out of hope, according toHedge Fund Manager. It all began last year when the New York-based firm liquidated its event-driven portfolios, which represented 41.3% of its annual income. Then, just last month, the firm’s quantitative equity team and fundamental small-cap value team beelined forBear Stearns, while chief investment officerPhilip Friedmanleft for somewhere else. Friedman was just the latest departure, as over the past year firm founderJohn Levinwalked out the door, after he was booted as a director whenSteel Partnerswon a proxy vote, and the departure ofSeth TurkeltaubandRichard Lodewickled the firm to liquidate the alternative investments funds they managed – which accounted for more than one-fifth of the firm’s revenues. So, what now for BKF?HFMreports that the firm is in the process of returning every last penny of the remaining $2 billion AUM to investors, and then, in the words of Chairman and CEOJohn Siciliano, the asset-less BKF will “explore its options in the asset management space.”