Dubin, 62, is turning over management of the $1 billion Engineers Gate to Greg Eisner, he said in an internal memo sent Friday and seen by Bloomberg. He will step down from the firm at the end of the month.
“After forty years, I am looking forward to transitioning from being an ‘Investment Manager’ to an ‘Investor,’” Dubin wrote in the memo.
The announcement comes five months after a previously sealed deposition drew the billionaire into the scandal surrounding the late financier Jeffrey Epstein: A woman who said she’d been Epstein’s “sex slave” years earlier claimed she’d been forced into an encounter with Dubin. He and his wife promptly denounced the allegations as “demonstrably false.”
Reuters earlier reported on Dubin’s retirement. He told the news service that his decision was unrelated to the attention on his relationship with Epstein. He also said the news coverage surrounding it was “false” and upsetting.
Dubin is the latest hedge fund veteran to step away from the business. Louis Bacon of Moore Capital Management and Redwood Capital Management’s Jonathan Kolatch both recently said they were ending their decades-long careers managing client money.
Dubin co-founded hedge fund Highbridge Capital Management in 1992, and sold a majority stake in the firm a dozen years later to JPMorgan Chase & Co. He exited that firm in 2013, and founded his family office and quantitative hedge fund Engineers Gate a short while later.
Engineers Gate’s average annual gains since inception were 5% after fees, Bloomberg reported in October.
Canada Pension Plan Investment Board, one of Engineers Gate’s five investors, had grown frustrated with its low returns and was scrutinizing its investment, people familiar with the matter said in October. The pension declined to comment Friday.