Institutional Investor's Alpha Magazine - December 2007/January 2008 - (Page 27)

Marathon Asset Management erations, technology, compliance, legal matters and human resources. Rabinowitz is credited with creating tight internal controls that closely monitor costs and compliance. “We hold ourselves to a higher standard,” he explains. “Every dollar is accounted for.” Richards says management expertise is a huge issue on Wall Street because the people who head up trading and sales are generally the biggest producers. They are also usually the most aggressive and driven. “When you are a trader, you are making all decisions when to buy, sell or hedge,” Richards explains. “When I became a manager, I still ran a trading book, but in addition to that I was setting strategic direction and working with teams of people and delegating, as opposed to making every decision.” Even as Marathon has grown, Hanover and Richards have not forgotten their emerging-markets roots. In 2006 they hired Gordon, the former co-head of Bank of America’s international special situations group, to oversee emergingmarkets investments and to run Marathon Master Fund. He says there are many opportunities for his group to work with Marathon’s private equity team on deals. A few years ago, for example, the Special Opportunity and Master funds worked together to help lead the restructuring of the debt of Globo Comunicações e Participações (Globopar), Brazil’s largest media company. Globopar eventually reduced its debt by more than $300 million. Marathon, which had bought some of the company’s debt for less than 20 cents on the dollar, received more than par when the restructuring was completed. Given Marathon’s asset growth and performance, the decision to have Hanover oversee investing while Richards runs the business looks like a smart one. Despite their apparent differences, Richards and Hanover are very close and speak with one another throughout the day. They live less than a 20-minute drive apart in the suburbs north of Manhattan — Hanover in Greenwich, Connecticut, and Richards in Purchase, New York — and frequently socialize on weekends. Occasionally, they drive together to the ofﬁce. It is not uncommon for both to be at work by 6:00 a.m. and stay well into the evening. “It’s a 24-7 job,” acknowledges Rabinowitz, an observant Jew, before catching himself. “Actually, I work six days; I go to temple on Saturday.” For his part, global head of investment management Ronzetti refers to his work on some of the Asian restructurings as “my night job.” SITTING IN HIS SPACIOUS OFFICE overlooking Fifth Avenue, Richards can watch as Marathon’s new home approaches completion several blocks away. The Bank of America Tower, he explains, will be one of the Alpha Sponsored Statement Serviced Apartments Like No Other A t Apartment O, we bring you the best of both worlds. Each of our three-bedroom units boasts of fine art and furniture that bring you back to the last glory days of Old Shanghai or the colonial grandeur of Old Hong Kong. At the same time, you are treated to the comforts of cutting edge media technology: ● 42” LCD TV with “Now” Channel ● Home entertainment system with Hi-Fi, DVD player and recorder ● Free wireless broadband Apartment O offers many unique details that set it apart from standard serviced apartments: ● Miele kitchen appliances ● Detailed artwork on wardrobes and mirrors ● Dorn Bracht bathroom fittings with handpainted cherry blossom tiles Experience ultra luxury living at Causeway Bay Apartment O. For details, please go to: www.apartmento.com.hk http://www.apartmento.com.hk

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - December 2007/January 2008

Institutional Investor's Alpha Magazine - December 2007/January 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Liberal Returns The Good Guy: Inner-city MVP Cover Story: Marathon Men Interview: Rizk Management Profile: Living on Hostile Ground Profile: Buy and Hold In Theory: The Fallacy of Portable Alpha Strategies: Changing Course Alpha Bytes: Behind the Scenes Unhedged: Commentary: An Activist Alternative

Institutional Investor's Alpha Magazine - December 2007/January 2008

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