Fortune – Izzy Englander built one of the most successful hedge funds around. But will his investors stick with him once they realize that the next big hedge fund scandal may be brewing right under their noses?
By Marcia Vickers
It was rather unusual for Israel A. Englander, Wall Street legend, to summon traders away from their desks in the middle of a hectic day. But in the fall of 2003 he discreetly invited several of his top producers into a conference room at the bustling Fifth Avenue headquarters of his then-$4 billion hedge fund, Millennium Partners. For a few moments the traders forgot about options and swaps and shorts. The chat, according to one trader present, was vintage “Izzy,” as the boss is widely known: clipped, to the point, laced with dry humor. He told them Millennium was doing just great, despite the fact that one of its traders had just pleaded guilty to criminal charges of securities fraud. Never mind that the SEC and the New York attorney general had launched an investigation. “Don’t pay attention to what you see in the press,” Izzy said. He assured them that the fund’s legal troubles were under control. Then he lightheartedly told them to get back to making money or they all really would be out of work.
