Buddy Fletcher
Alphonse "Buddy" Fletcher Jr. | |
|---|---|
| Born | December 19, 1965 |
| Occupation(s) | Hedge fund manager, philanthropist |
| Known for | Founder of Fletcher Asset Management, Fletcher Foundation |
Alphonse "Buddy" Fletcher Jr. (born December 19, 1965) is a former American hedge fund manager and the founder of the Fletcher Foundation. His professional journey started as a quantitative equity trader at Bear Stearns, after which he joined Kidder, Peabody & Co.. Fletcher, an African American, initiated a racial discrimination lawsuit against Kidder Peabody; although his case was dismissed in court, he ultimately secured an arbitration award totaling $1.26 million. Additionally, Fletcher was engaged in legal proceedings concerning a conflict with the board of The Dakota apartment complex in New York City.
In 1991, he established Fletcher Asset Management. His flagship fund, Fletcher International, reportedly faced insolvency beginning in 2008 and was officially declared bankrupt in 2012.
Early life and education
Raised in Waterford, Connecticut, Fletcher's father, Alphonse Sr., was employed as a technician at the Electric Boat Corporation in Groton, which manufactures submarines. His mother, Bettye, held roles as a teacher, social worker, dean, and principal and earned a doctorate in Education from Teachers College, Columbia University. Fletcher has two younger siblings: Todd and Geoffrey, who is recognized as an Academy Award-winning filmmaker and screenwriter.
He graduated from Harvard College with an A.B. degree in applied mathematics in 1987 and was chosen as first marshall of his graduating class. Later, he obtained a master's degree in environmental management from the Yale School of Forestry and Environmental Studies in 2004.
Career
Upon completing his studies at Harvard College in 1987, Fletcher began working at Bear Stearns as a quantitative equity trader focusing on dividend arbitrage strategies. He subsequently joined Kidder Peabody’s equity trading division.
Fletcher Asset Management
After leaving Kidder Peabody, Fletcher founded Fletcher Asset Management, which concentrated on private investments targeting small-cap publicly traded companies.
During its initial four years, the firm operated with substantial leverage. Fletcher employed a strategy that combined active trading of public securities for both personal accounts and clients alongside longer-term equity holdings, utilizing hedging techniques to manage risk exposure. The firm also participated in PIPE transactions. At certain points, its trading activity represented as much as 5% of the New York Stock Exchange’s overall volume. In 1994, Fletcher shifted from broker-dealer registration to becoming a registered investment adviser to simplify asset management operations.
Fund bankruptcy
In July 2011, FIA Leveraged Fund—managed by Fletcher Asset Management—was unable to fulfill a $144 million redemption demand from three Louisiana pension funds. By April 2012, the Cayman Islands court declared the fund insolvent and ordered its liquidation.
In June 2012, Fletcher International Ltd., the Bermuda-based master fund overseeing Fletcher funds, filed for Chapter 11 bankruptcy protection in Manhattan.
Alphonse Fletcher v. Kidder Peabody
In 1991, following his tenure as an equity trader at Kidder Peabody, Fletcher initiated a racial discrimination lawsuit in New York state court. The New York Court of Appeals determined that the matter should proceed through arbitration. During NYSE arbitration proceedings, Fletcher was awarded $1.26 million; however, a subsequent arbitration dismissed the racial discrimination allegations.
Dakota lawsuit
In February 2011, Fletcher initiated legal action against the Board of Directors of The Dakota cooperative in Manhattan, where he had owned four apartments since 1992, accusing them of defamation and illegal discrimination. After agreeing to purchase a fifth unit in 2010, his application was declined by the board due to concerns regarding his financial documentation. In September 2015, Judge Eileen A. Rakower ruled in favor of The Dakota by granting their motion for summary judgment, resulting in dismissal of the case; Fletcher indicated his intention to pursue an appeal.
Federal tax lien
On May 29, 2013, it was reported by The Wall Street Journal that the Internal Revenue Service had placed a $1.4 million federal income tax lien against Fletcher.
Fletcher Foundation and philanthropy
Following the passing of advisor Reginald Lewis in 1993, Fletcher contributed $1 million to the Reginald F. Lewis Memorial Endowment, which had been created by the National Association for the Advancement of Colored People as a result of Lewis’s $2 million bequest.
To commemorate the centenary of Plessy v. Ferguson in 1996, Fletcher established a professorship at Harvard College.
In 2004, he founded the Alphonse Fletcher University Professor Fellowship program aimed at supporting scholars dedicated to improving race relations at Harvard. This program, part of the Fletcher Foundation, provides funding to eminent academics including Henry Louis Gates Jr., who holds the Alphonse Fletcher University Professorship at Harvard.
In 1995, Michael Meade, an employee at Fletcher Asset Management, filed a lawsuit against Fletcher concerning disputes over profit-sharing. Meade claimed he was terminated after rejecting sexual advances from Fletcher, allegations which Fletcher denied; the matter was ultimately resolved through a confidential agreement.
In both 2003 and 2006, two male caretakers accused Fletcher of sexual harassment. Fletcher refuted these accusations, and both cases reportedly concluded with confidential settlements.
Personal life
Fletcher married Ellen Pao in December 2007 in San Francisco; at that time, Pao was a junior partner at venture capital firm Kleiner Perkins. The couple met earlier that year as fellows of the Aspen Institute. They have a daughter born in July 2008. Before Pao, Fletcher was involved in a relationship lasting ten years with Hobart V. "Bo" Fowlkes Jr., who serves as godfather to their daughter.
The couple has lived in the St. Regis Residence located in San Francisco. Additionally, Fletcher maintains ownership of apartments at The Dakota in New York City.
By 2019, Fletcher and Pao were engaged in divorce proceedings characterized by public disputes.