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June 10, 2005 at 08:00 PM
NEW YORK (HedgeWorld.com)–John Mack, whose cost cutting and streamlining skills earned him the Wall Street nickname “Mack the Knife,” has joined Pequot Capital Management Inc. as the hedge fund firm’s chairman. Arthur J. Samberg will remain as chief executive and continue to oversee management of the firm and its investment portfolios.
Mr. Mack is a longtime Wall Street executive who spent 30 years at Morgan Stanley and led that firm into and through its 1997 merger with Dean Witter & Co. He left Morgan Stanley Dean Witter in 2001 after losing a battle for the top spot to Dean Witter alum Philip Purcell.
It was during his time at Morgan that Mr. Mack earned his nickname as he cut the firm’s headcount. Most recently, Mr. Mack spent three years as co-chief executive of Credit Suisse Group and chief executive at Credit Suisse First Boston, where he helped the firm return to profitability by reducing what was considered a bloated payroll of over-compensated investment bankers. He oversaw the slashing of 9,000 jobs following Credit Suisse’s merger with Donaldson, Lufkin & Jenrette Inc.
At Pequot, it appears Mr. Mack’s mission will be addition, rather than subtraction. In a statement, Mr. Samberg used words like “expand” and “broaden” to describe Mr. Mack’s new full-time role.
“John has vast experience in markets around the world, a powerful global network of relationships and enormous energy that will help us pursue new opportunities and keep generating returns for our clients,” Mr. Samberg said. “He has been a close friend for many years and I look forward to collaborating with him to broaden Pequot’s footprint and expand our platform of alternative investments.”
Mr. Samberg also noted that Mr. Mack’s services have been in demand from other leading financial service firms. There were even rumors he might return to Morgan Stanley if the ouster of Mr. Purcell proved successful, but that talk ultimately proved false, and Mr. Mack told associates he had any interest in returning to Morgan.
