|Born||Alphonse Fletcher, Jr.
1965 (age 49–50)
New London, Connecticut, United States
New York City
|Education||A.B. in applied mathematics Harvard College, 1987
Master's degree in Environmental Management Yale School of Forestry and Environmental Studies, 2004
|Occupation||Founder, Chairman, and CEO of Fletcher Asset Management
Founder of the Fletcher Foundation
|Employer||Bear Stearns (1987–??)
Kidder Peabody (19??–91)
Fletcher Asset Management (1991–present)
|Known for||Hedge fund management, fund bankruptcy, Kidder Peabody discrimination lawsuit, Dakota discrimination lawsuit, Philanthropy|
|Spouse(s)||Ellen K. Pao (2007–present)|
|Relatives||Geoffrey S. Fletcher (brother)|
He began his career as a quantitative equity trader at Bear Stearns and later worked at Kidder, Peabody & Co. Fletcher, who is African American, sued Kidder Peabody for racial discrimination. Although his racial discrimination claims were dismissed, he eventually won an arbitration award of US$1.26 million. Fletcher has also been involved in litigation centered on a dispute with the board of The Dakota apartment building in New York City.
Fletcher founded Fletcher Asset Management in 1991. His main fund, Fletcher International, may have been insolvent since 2008 and was declared bankrupt in 2012. Money from the fund was used to finance his brother's movie project, according to the bankruptcy court trustee.
Early life and education
Fletcher was raised in Waterford, Connecticut. His father, Alphonse, Sr., was a technician at the Electric Boat Corporation in Groton, a company that makes submarines. His mother, Bettye, a long-time teacher and later a social worker, dean, and school principal, received a Ph.D. in Education from Teachers College, Columbia University. Fletcher has two younger brothers, Todd and Geoffrey, a screenwriter, film director and Academy Award winner.
He attended Harvard College where he received an A.B. degree as an applied mathematics major in 1987. He was elected first marshall (ceremonial position) of the 1987 class. He earned a Master's degree in Environmental Management from the Yale School of Forestry and Environmental Studies in 2004.
After graduating from Harvard College in 1987, Fletcher began his career at Bear Stearns as a quantitative equity trader who capitalized on dividend-related arbitrage. He was recruited to Kidder Peabody as a trader in the equity trading group.
Fletcher Asset Management
During Fletcher Asset Management's first four years, it traded with heavy leverage. His general strategy was trading public instruments for his own account and on behalf of clients, but he also made longer-term equity investments. He used hedges with both types of investments. He has also been involved in PIPE deals. At one time, his firm's trading activity occasionally accounted for 5% of the volume on the New York Stock Exchange. In 1994, Fletcher surrendered his broker-dealer registration and became a registered investment adviser, which made managing money more convenient.
In July 2011, FIA Leveraged Fund, an investment vehicle managed by Fletcher Asset Management, was unable to meet a redemption request, totaling $144 million, by three Louisiana pension fund investors. In April 2012, the Grand Court of the Cayman Islands ruled that the fund was insolvent and ordered that it be wound up (liquidated).
In November 2013, Richard J. Davis, the court-appointed Chapter 11 Trustee of Fletcher International Ltd., said his investigation showed that Fletcher investors were victims of a fraud perpetrated by Alphonse Fletcher and others at Fletcher Asset Management, which enabled them to divert investors' funds for their own benefit. Davis said that Fletcher International Ltd. and its feeder funds were likely insolvent as early as 2008 and his report stated: “In many ways, the fraud here has many of the characteristics of a Ponzi scheme, where, absent new investor money coming in, the overall structure would collapse due to an inability to meet existing redemption and other obligations".
Alphonse Fletcher vs. Kidder Peabody
In 1991, after working as an equity trader at Kidder Peabody, Fletcher filed a lawsuit in New York state court for employment racial discrimination. The New York Court of Appeals ruled that Fletcher's claim must be arbitrated. In a NYSE arbitration, Fletcher was awarded $1.26 million, and in a subsequent arbitration, the racial discrimination claim was dismissed.
In February 2011, Fletcher filed a lawsuit against the Board of Directors of The Dakota co-op building in Manhattan, where he had lived since 1992 and owned four apartments. Among other things, he alleged defamation and unlawful discrimination. In March 2010, Fletcher had signed a contract to purchase a fifth apartment at The Dakota, intending to combine it with his current home. The Dakota board said it rejected Fletcher's application based on the financial materials he provided in his application.
Fletcher Foundation and philanthropy
In 1993, following the death of friend and advisor Reginald Lewis, Fletcher donated $1 million to the Reginald F. Lewis Memorial Endowment. The endowment had been created by the National Association for the Advancement of Colored People after Lewis instructed his wife to bequeath $2 million to the organization.
In 2004, Fletcher created the Alphonse Fletcher University Professor Fellowship program to financially support professors working to improve race relations at Harvard. Funded as part of the Fletcher Foundation, Henry Louis Gates, Jr. is the Alphonse Fletcher University Professor at Harvard.
In 2007, Fletcher married Ellen Pao, then a junior partner at venture capital firm Kleiner Perkins Caufield & Byers, and along with Fletcher, a Crown Fellow at the Aspen Institute. As of November 2014 Pao is interim chief executive officer of Internet company Reddit Inc. Fletcher has a daughter, Matilda Pao Fletcher.
Fletcher and his wife have lived in the St. Regis Residence in San Francisco. Fletcher also owns homes in The Dakota in New York City. He put his Cornwall, Connecticut home up for sale in August 2013.
- Skadden to Pay $4.25 Million in Fletcher Bankruptcy Case by Rachel Abrams March 21, 2014 Deal Book New York Times
- Buddy Fletcher headed for the big house? Richard Bradley November 29, 2013 ShotintheDark
- Trustee report in Fletcher Hedge Fund bankruptcy
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