David Rocker
Encyclopedia
David A. Rocker is the founder of the hedge fund
Rocker Partners, LP (now known as Copper River Management, LLC), and former columnist for TheStreet.com
. After founding Rocker Partners in 1985, Rocker built the firm into one of the largest hedge funds specializing in short selling
.
Rocker holds a magna cum laude bachelor's from Harvard College
and a master's of business administration from Harvard Business School
. Rocker and his wife, Marian, reside in Short Hills, NJ, and
Key Biscayne, FL. He has two sons: Daniel is a trader at hedge fund Zimmer Lucas Partners, Joshua is an emergency room pediatrician.
and before getting his MBA from Harvard Business School
, Rocker served for two years as an officer in the US Navy.
In 1969, Rocker joined Mitchell Hutchins
, where he was a research analyst and investment banker. In 1972, he hired on at Steinhardt, Fine, Berkowitz & Co.
, a pioneering hedge fund
, and was a general partner there from 1973 to 1981.
Rocker joined Century Capital Associates, an investment adviser firm, in 1981. At Century, he was an analyst and portfolio manager
for institutional clients. Rocker managed over $600 million in assets while at Century.
's Kudlow and Cramer.
As part of Rocker Partners, Rocker opened a British Virgin Islands
fund, Compass Holdings Ltd, as well as Helmsman Holdings, which was later folded into Compass. He also founded Contra Strategic Short Fund LP, based in the United States.
In 2003, Rocker testified on the industry before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
In 2005, Rocker was named as a defendant in a lawsuit from Overstock.com
. In December 2009, the suit against Rocker, whose name had since been changed to Copper River Partners, was settled by the hedge fund agreeing to pay $5 million.
In 2004, Rocker funds were down to less than $400 million in assets, down by half of its previous high figure. However, in 2005, Rocker Partners netted 46%, and total assets rose to $1.3 billion. Annualized returns since inception was about 11% at the end of 2005, when it had 12 employees.
Rocker Partners is now incorporated as Copper River Management, LLC. Rocker's former co-manager at the firm, Marc Cohodes, fully assumed managerial duties after Rocker's retirement in early 2007.
According to Richard Sauer, hired by Copper River after his departure, Copper River shut down in 2008 due to the bankruptcy of Lehman UK (which prevented access to $100 million of Copper River's assets) and to the actions of the SEC to limit the holding of short positions in the market and of Copper River's Prime Broker (Goldman Sachs) in response to the SEC's emergency rules.
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
Rocker Partners, LP (now known as Copper River Management, LLC), and former columnist for TheStreet.com
TheStreet.com
-History:TheStreet.com, Inc., was co-founded in 1996 by Jim Cramer and Martin Peretz. It is traded on the NASDAQ Global Market. The company is headquartered at 14 Wall Street in New York City. Its stock was made public in May 1999 under the direction of past Chairman and Chief Executive Officer...
. After founding Rocker Partners in 1985, Rocker built the firm into one of the largest hedge funds specializing in short selling
Short selling
In finance, short selling is the practice of selling assets, usually securities, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to that third party...
.
Rocker holds a magna cum laude bachelor's from Harvard College
Harvard College
Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...
and a master's of business administration from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
. Rocker and his wife, Marian, reside in Short Hills, NJ, and
Key Biscayne, FL. He has two sons: Daniel is a trader at hedge fund Zimmer Lucas Partners, Joshua is an emergency room pediatrician.
Early life and career
Rocker's grandparents were Austrian and Russian immigrants. His father was an accountant in West Orange, NJ, where Rocker was raised and married his high school sweetheart, Marian. After graduating from Harvard CollegeHarvard College
Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...
and before getting his MBA from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
, Rocker served for two years as an officer in the US Navy.
In 1969, Rocker joined Mitchell Hutchins
Mitchell Hutchins
Mitchell, Hutchins & Co. was a leading equity research boutique in the U.S. until its acquisition by Paine Webber in 1977. In 1959, Donald Marron founded D.B. Marron & Company. In 1965, Marron sold his company to Mitchell Hutchins and in 1967 was named president of the company...
, where he was a research analyst and investment banker. In 1972, he hired on at Steinhardt, Fine, Berkowitz & Co.
Michael Steinhardt
Michael H. Steinhardt is an American investor and philanthropist active in Jewish causes. He was one of the first prominent hedge fund managers, and is a graduate of the Wharton School of the University of Pennsylvania. He founded Steinhardt, Fine, Berkowitz & Co., a hedge fund, in 1967...
, a pioneering hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
, and was a general partner there from 1973 to 1981.
Rocker joined Century Capital Associates, an investment adviser firm, in 1981. At Century, he was an analyst and portfolio manager
Portfolio manager
A portfolio manager is either a person who makes investment decisions using money other people have placed under his or her control or a person who manages a financial institution's asset and liability portfolios....
for institutional clients. Rocker managed over $600 million in assets while at Century.
Rocker Partners
Rocker left Century Capital Associates after it was acquired and formed Rocker Partners in 1985, based in Millburn, NJ. During his time at Rocker Partners, he was an online contributor on RealMoneyPro.com and quoted in Business Week for his opinions on stocks. In 2002, he appeared with Jim Cramer on CNBCCNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
's Kudlow and Cramer.
As part of Rocker Partners, Rocker opened a British Virgin Islands
British Virgin Islands
The Virgin Islands, often called the British Virgin Islands , is a British overseas territory and overseas territory of the European Union, located in the Caribbean to the east of Puerto Rico. The islands make up part of the Virgin Islands archipelago, the remaining islands constituting the U.S...
fund, Compass Holdings Ltd, as well as Helmsman Holdings, which was later folded into Compass. He also founded Contra Strategic Short Fund LP, based in the United States.
In 2003, Rocker testified on the industry before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
In 2005, Rocker was named as a defendant in a lawsuit from Overstock.com
Overstock.com
Overstock.com , also known by its shortcut, O.co, is an online retailer headquartered in Cottonwood Heights, Utah, near Salt Lake City. Founded in 1997 by Robert Brazell, under the name D2: Discounts Direct, it was a pioneering online seller of surplus merchandise which, upon its failure in 1999,...
. In December 2009, the suit against Rocker, whose name had since been changed to Copper River Partners, was settled by the hedge fund agreeing to pay $5 million.
In 2004, Rocker funds were down to less than $400 million in assets, down by half of its previous high figure. However, in 2005, Rocker Partners netted 46%, and total assets rose to $1.3 billion. Annualized returns since inception was about 11% at the end of 2005, when it had 12 employees.
Rocker Partners is now incorporated as Copper River Management, LLC. Rocker's former co-manager at the firm, Marc Cohodes, fully assumed managerial duties after Rocker's retirement in early 2007.
According to Richard Sauer, hired by Copper River after his departure, Copper River shut down in 2008 due to the bankruptcy of Lehman UK (which prevented access to $100 million of Copper River's assets) and to the actions of the SEC to limit the holding of short positions in the market and of Copper River's Prime Broker (Goldman Sachs) in response to the SEC's emergency rules.
External links
- Fortune, 'Lehman collapse puts hedge fund in dire straits'
- Transcript of Rocker testifying before House Subcommittee in 2003
- Rocker sells Martha Stewart Omnimedia shares
- Dan Dorfman column featuring Rocker
- Business Week, The Secret Lives of Short-Sellers
- FastCompany.com, How to Spot the Next Enron'
- The New York Times, Rocker comments about America Online, 1996
- Equities Magazine, pg. 7, Rocker on Prepaid Legal Services
- Rocker commentary on Krispy Kreme stock