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Hedge fund veteran and Epstein friend Dubin retires

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Via Financial Times

Glenn Dubin, a hedge fund veteran embroiled in the scandal surrounding the late disgraced financier Jeffrey Epstein, has decided to sever ties with the near-$1bn fund he founded as a large investor threatened to withdraw their funds. 

In an internal memo to staff seen by the Financial Times, Mr Dubin said he was retiring from the hedge fund industry after 40 years to focus on philanthropic projects and his family office, Dubin & Co. 

Mr Dubin’s retirement comes as the Canadian Pension Plan Investment Board, a key investor in Mr Dubin’s Engineers Gate, expressed concern about its management, according to people familiar with the matter. CPPIB declined to comment on their investment.

Greg Eisner, Engineers Gate’s current president, will take over as chief executive, a transition that Mr Dubin said has been in the works for some time. 

Mr Dubin’s exit comes after a tumultuous year for the 62-year-old investor, whose family’s ties to Epstein became a source of tabloid fodder after the latter was arrested. 

Mr Dubin, the first member of his family to attend college, went on to become one of Wall Street’s most successful hedge fund managers. He founded Highbridge Capital Management in 1992 with $35m and built it into a formidable multi-strategy hedge fund with $29bn in assets. Mr Dubin later sold the company to JPMorgan Chase for an estimated $1bn. 

But Mr Dubin has come under fire for his ties to Epstein since the financier was arrested last June at Teterboro Airport in New Jersey on sex trafficking charges. Epstein, who had previously pleaded guilty in 2008 to soliciting prostitution from a minor, hung himself in a New York jail cell in August while awaiting trial. 

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While most of Epstein’s associates tried to distance themselves from Epstein following his 2008 guilty plea, Mr Dubin and his wife Eva Andersson-Dubin stood by him. 

The former Miss Sweden, now a prominent New York doctor and socialite, dated Epstein for years until the early 1990s. The Dubins and their children continued to socialise with Epstein in New York and Palm Beach and Dr Andersson-Dubin even vouched for Epstein to his parole officer. 

Those ties have become a liability, both in business and society, as members of the moneyed class that mixed with Epstein have desperately tried to distance themselves from the scandal.

Mr Dubin said in an interview with Reuters, which first reported the decision to leave the company, that it was not at all related to his ties to Epstein.

The transition would also see Mr Dubin redeem his personal investment in Engineers Gate, one person briefed on the matter said.

The hedge fund manager Paul Tudor Jones was among the early investors in Engineers Gate. Mr Eisner, who had also served as chief investment officer of the Dubin & Co family office, will relinquish that role to work full-time at the fund.

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