Randall D. Smith
Randy Smith | |
|---|---|
| Born | Randall Duncan Smith Template:Birth year and age |
| Nationality | American |
| Alma mater | Cornell University (undergraduate), Wharton School of the University of Pennsylvania (MBA) |
| Occupation(s) | Hedge fund executive, investor |
| Years active | 1975–present |
| Known for | Founder and chief investment officer of Alden Global Capital; pioneer in vulture capitalism |
| Notable work | Created convertible arbitrage division at Bear Stearns; established Alden Global Capital |
Randall Duncan "Randy" Smith (born 1942) is an American hedge fund executive, who established and currently leads the investment division at Alden Global Capital. He is widely acknowledged as a trailblazer in vulture capitalism, focusing on the acquisition and breakup of financially troubled companies.
Early life
Smith obtained his undergraduate degree from Cornell University in 1965, followed by an MBA from the Wharton School of the University of Pennsylvania in 1967. His younger sibling, Russ Smith, launched multiple alternative newspapers, including the Baltimore City Paper and the Washington City Paper.
Career
Between 1975 and 1996, Smith was a partner at Bear Stearns, where he created the convertible arbitrage division and subsequently concentrated on investments in distressed assets. His initial investment venture was funded by $20,000 he won on the television show Dream House during the late 1960s.
Real estate
In 1998, Smith purchased Bryan Tower, a 40-story office building located in downtown Dallas, Texas. His son Caleb Smith oversaw its renovation through Spire Realty, a company he currently directs.
Together with his second wife Barbara and brother Jeffrey Smith, he acquired and refurbished the historic Sam Houston Hotel in 2002, reopening it as the Alden Hotel in 2005. The property was sold to Northwood Investors in 2010, who then transferred ownership in 2012 to American Liberty Hospitality and Gentry Mills Capital, restoring its original name.
Smith and Barbara possess sixteen residential rental properties around Palm Beach, Florida, held through limited liability companies that generate income from tenants.
Alden Global Capital
Smith founded Alden Global Capital in 2007 and holds the position of chief investment officer. By May 2021, Alden Global had become the second-largest publisher of newspapers in the United States. The firm is noted for its aggressive cost-cutting strategies, including substantial reductions in newsroom personnel across its media outlets.
Criticisms
A New York Times article from 1991 exposed conflicts of interest involving Smith during his time at Bear Stearns. In 2005, he resolved claims connected to a bankruptcy trustee concerning an investment in Hawaiian Airlines. Journalist McKay Coppins, writing for The Atlantic, criticized Smith and Alden co-founder Heath Freeman for placing profit motives above the sustainability of their media holdings.
Personal life
Smith met his first wife, Kathryn Smith, while they were both students at Cornell; she earned her doctorate in political science. They had two children: a son named Caleb Smith, who was featured in Dallas's D Magazine in 2011, and a daughter Abigail (deceased 2018). Kathryn passed away due to ovarian cancer.
He is presently married to Barbara Stovall Smith.