Brody said several factors prompted him to retire, including pride in building a substantial and enduring business; his age and 40 years of working in finance; and the desire to do more charity work.
Brody and Brosens founded Taconic in 1999 out of Goldman Sachs. Brody had spent 20 years at the bank where he co‐headed the Goldman's long-term principal investing business and was a general partner and member of the management committee, according to a Taconic biography.
Brosens, now 56, also spent 15 years at Goldman Sachs before forming the hedge fund firm.
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The flagship Taconic Opportunity Fund is up approximately 13 percent year to date through October, according to a person familiar with the situation.
Brody's retirement doesn't trigger any so-called key man clause, which would allow investors to redeem their money early because a critical team member departed.
"Frank and I have planned for this transition over a considerable period of time, keeping your interests paramount in the process. We are confident that the current strength of the Taconic organization makes this an ideal time to begin this transition," Brody wrote. "Taconic is well positioned with respect to both our investment team and our business function. Our recent performance results have been strong and we are confident about the investment opportunity set available to us in the years to come."
News of Brody's retirement was first reported by The Wall Street Journal.
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