In the Back Bay neighborhood of Boston, one man is building a moneymaking machine that rivals some of the hedge-fund industry's biggest names.
Calls to his office go unreturned even from those eager to fork over eight-figure sums, potential investors say. One industry veteran referred to him as "a unicorn," as few people have ever seen him.
WSJ's Rob Copeland profiles David Abrams, the hedge-fund world's one-man wealth machine, whose main funds have averaged a 15% annualized return over the past 15 years. Photo: Abrams Capital.
The hedge-fund manager, David Abrams, has personally become a billionaire, and earned billions more for his wealthy investors, over the past five years running what is effectively a one-man shop, according to company and investor documents reviewed by The Wall Street Journal and people who have worked with him. His firm, Abrams Capital Management LP, manages nearly $8 billion across three funds and is discussing raising money for a fourth fund that could help push its assets past $10 billion.
In an era of star investors who appear regularly on television and talk up their ideas at hyped confabs, Mr. Abrams, 53 years old, has never spoken at an event open to the public.
"He probably would have preferred you not find him," said Roger Brown, president of Berklee College of Music, where Mr. Abrams is a trustee.
Abrams Capital's main funds have posted an average annualized return of about 15% since its founding in 1999, documents show, nearly double the average for hedge funds tracked by HFR Inc. and triple the S&P 500 index, including dividends.
Graduated from University of Pennsylvania as history major
Protégé of hedge-fund manager Seth Klarman
Started Abrams Capital Management in 1999 after leaving Klarman's firm
Returns from main fund have tripled returns of S&P 500 in 15 years
