Westport’s Pequot Capital Mangement said today it has hired Wall Street veteran John Mack as chairman of the $6.5 billion hedge fund.
His appointment ends months of speculation that he was waiting in the wings to take the helm at Morgan Stanley, where former executives have been pressing for the ousting of chief executive Philip Purcell.
The rumors persisted despite his insistence that he had no involvement with the rebels. He was president of Morgan Stanley in 1997 when it merged with Dean Witter Discover but quit after he was outmaneuvered by Purcell.
Mack was later recruited by Credit Suisse First Boston and successfully revitalized the investment bank, earning the nickname Mack the Knife for his cost-cutting plans. But he left after a clash over strategy with Credit Suisse’s Zurich leadership.
Pequot, based at the Nyala Farms office complex just off I-95, said it had hired Mack to broaden its capabilities in “alternative investments” beyond its current U.S. focus.
Art Samberg will remain chief executive of the investment firm and will continue to oversee its management and core investment portfolios.
“Alternative investments are the most dynamic sector of the capital markets today, and Pequot has the talent, entrepreneurial culture, product platform, and strong track record that make it ideally suited to leverage the substantial growth potential in this area,” Mack said in a statement.
