Paul Singer (businessman)
Singer at the World Economic Forum Annual Meeting in 2013
|Born||Paul Elliott Singer
August 22, 1944
|Residence||New York City|
|Alma mater||University of Rochester (B.S.)
Harvard Law School (J.D.)
|Occupation||Hedge Fund Manager
|Known for||Elliott Management|
|Net worth||US$ 1.9 billion (March 2015)|
Paul Elliott Singer (born August 22, 1944) is an American hedge fund manager, investor, philanthropist, and political activist. He is the founder and CEO of hedge fund Elliott Management Corporation, a political activist and activist investor, and (via his Paul E. Singer Foundation) a prominent New York based philanthropist. In 2014, Forbes rated Singer's net worth as $1.9 billion, self-made.
Through Elliott Management, Singer won cases against Peru, the Republic of Congo, and is in a dispute with Argentina for repayment of the full face value of debts acquired at a deep discount during the countries' respective financial crises.
- 1 Education and early career
- 2 Elliott Management Corporation
- 3 Philanthropy
- 4 Political activity
- 5 Writings and commentary
- 6 Board memberships
- 7 Personal life
- 8 References
Education and early career
Singer grew up in a Jewish family, one of three children of a Manhattan pharmacist and a homemaker. He obtained his B.S. in psychology from the University of Rochester and a J.D. from Harvard Law School. In 1974, Singer accepted a job as an attorney in the real estate division of the investment bank Donaldson, Lufkin & Jenrette. Additionally Singer is an accomplished musician. He began studying classical piano at the age of 10. He enjoys Led Zeppelin. He has jammed onstage with Meat Loaf.
Elliott Management Corporation
In 1977, Singer founded the hedge fund Elliott Associates L.P. with $1.3 million from various friends and family members.} Elliott Management Corporation oversees Elliott Associates and Elliott International Limited, which together have more than $21 billion in assets under management. According to The Guardian, "Elliott's principal investment strategy is buying distressed debt cheaply and selling it at a profit or suing for full payment."
A 2012 CNN profile of Singer noted that losses sustained early in his career led to a “risk aversion that still guides his investing today. For example, he rarely uses leverage to juice returns.” Thanks to his caution, “Elliott has had only two down years” since 1977, rising “4.2% in 2011, a year in which most hedge funds lost money.” According to CNN, Singer focused from early times “on distressed assets,” buying up bankrupt firms' debt and acquiring “a reputation for strong-arming his way to profit.” Elliott has been involved “in most of the big post-crash restructurings, including Chrysler and auto parts supplier Delphi.” Over Elliott's history, it has averaged 14 percent annual returns, compared with 10.8% for the S&P 500 stock index as a whole.
Forbes noted, in December 2012, that Elliot Management had offered to purchase the software firm Compuware after having accumulated 8% of the company's stock. Elliott expressed the view that Compuware had great promise but had been under-performing under its current management.
Purchase of sovereign debts
In 1996, Elliott bought defaulted Peruvian debt for a reported $11.4 million. In 1998, a U.S. court ruled that one could not buy debt with the sole purpose of suing the debtor. Elliott won a $58 million judgment when the ruling was overturned in 2000.
After Argentina defaulted on its debt in 2002, NML Capital Limited, a Cayman Islands-based offshore unit of Paul Singer's Elliott Management Corporation, refused to accept the Argentine offer to pay less than 30 cents per dollar of debt. These are bonds with a face value of $630 million, for which NML reportedly bought for $48 million, but that Elliott assessed were then worth $2.3 billion with accrued interest.
In early October 2012, NML arranged for the seizure of an Argentine naval vessel in Ghana, the ARA Libertad, in an effort to force Argentina to pay its debt. Argentina, however, refused to pay the debt, and shortly thereafter regained control of the ship and removed it from Ghanaian waters.
In a November 2012 piece in the Huffington Post, Argentina's Foreign Affairs Minister, Héctor Timerman, harshly criticized Singer for attempting to collect on the debt. Calling Singer “the inventor of vulture funds,” Timerman argued that the $127 million Singer had received from the Republic of Congo to settle a $400 million debt he had acquired for $10 million “should be going to build roads, schools and other poverty reduction programs.”
According to the Financial Times, "Mr Singer chafes at the term 'vulture fund'". Patricia Adams, the executive director of Probe International, wrote that "the pejorative is highly misleading," arguing that the funds are simply bondholders seeking to collect debts.
In his investor letter for the fourth quarter of 2012, Singer described Argentina’s response to the court's ruling as “defiant and acrimonious,” saying that its dismissal of the ruling as “judicial colonialism” was “puzzling,” given that Argentina had chosen “to submit itself to the jurisdiction of New York courts and to waive its sovereign immunity.”
In February 2013, the U.S. appeals court heard Argentina's appeal in the NML case. In March 2013, Argentina offered a new plan that was judged unlikely to be acceptable to the New York court. On August 23, 2013, the U.S. Court of Appeals for the Second Circuit affirmed the lower court's verdict and dismissed said plan. In June 2014, the U.S. Supreme Court rejected Argentina's appeal of the ruling.
Paul E. Singer Family Foundation
Paul Singer founded the Paul E. Singer Family Foundation, which supports many charitable projects including the Harvard Graduate School of Education Singer Prize for Excellence in Secondary Teaching, VH1 Save The Music Foundation, the Food Bank For New York City, National Gay and Lesbian Task Force Action Fund, the New York City Police Foundation and MarineParents.com.
The Giving Pledge
Singer also signed The Giving Pledge, a commitment by wealthy individuals and families to donate more than half of their wealth to address society's "most difficult moral and economic challenges." In his commitment letter, he stated, "The Giving Pledge uniquely combines the direct provision of resources with the power of an idea - the idea that fostering discussions about the purpose of philanthropy may improve our philosophies of giving and lead to better results for those in need." Singer concluded in this letter that he is "happy and grateful to sign up for such a worthy endeavor."
Singer has contributed to gay-rights causes and same-sex marriage campaigns, and has also actively sought to persuade other conservatives to support gay marriage. He has joined other Wall Street executives in support of LGBT equality in the workplace as a means of retaining employees and improving overall business outcomes. Signer stated that same-sex marriage promotes “family stability” and said that in a time when “the institution of marriage in America has utterly collapsed,” the fact that gay couples want to marry “is kind of a lovely thing and a cool thing and a wonderful thing.”
Singer, whose son married his partner in Massachusetts, also donated $425,000 of his own money and raised another $500,000 to support the drive for legalization of gay marriage in New York, and in October 2012, Singer donated $250,000 to the Maryland Marriage Campaign.
In 2012, Singer provided $1 million to start a political action committee named American Unity PAC. According to the New York Times, the PAC's "sole mission will be to encourage Republican candidates to support same-sex marriage, in part by helping them to feel financially shielded from any blowback from well-funded groups that oppose it."
In 2014, Singer contributed $375,000 to support the gay rights activist group Americans for Workplace Opportunity in an effort to pass the Employment Non-Discrimination Act. This bill requires workplace protections to extend out to the LGBT community. Singer spent more than $10 million, since 2010, to help push Republicans and states to support and legalize gay marriage.
Singer sponsors the University of Rochester Singer Prize for Excellence in Secondary Teaching, the Harlem Children's Zone, the Success Charter Network, and the Police Athletic League NYC.[dead link]
Singer has given over $14 million to a variety of military causes, including the Bob Woodruff Foundation, the Special Operations Warrior Foundation, Spirit of America, and the Children of Fallen Patriots Foundation.
Singer is an active participant in Republican Party politics. He has said that he hopes to elect officials who will oppose government regulation of finance. Singer has given millions of dollars to politicians who favor a strong military and Israel. Singer was a major contributor to George W. Bush's presidential campaigns. President George W. Bush appointed Singer to serve on the Honorary Delegation to accompany him to Jerusalem for the celebration of the 60th anniversary of the State of Israel in May 2008.
2007 political influence
In 2007, Singer led a financial industry fund-raising effort for Rudolph Giuliani, first as regional finance chair and later as senior policy adviser. That same year, Singer provided $175,000 to support a petition drive for a proposed California initiative to apportion the state's 55 electoral votes by congressional district. At least 19 of the state's 53 congressional districts were expected to vote for a GOP presidential candidate, enough to change the national results in a close election.
In 2012, Singer provided $1 million to start a PAC named American Unity PAC. According to the New York Times, the PAC's "sole mission will be to encourage Republican candidates to support same-sex marriage, in part by helping them to feel financially shielded from any blowback from well-funded groups that oppose it."
Political action committees
Business Insider reported on January 30, 2013 that Singer had given Ben Bernanke a “D” grade. Fortune described Singer as "a passionate defender of the 1% and a rising Republican power broker".
Writings and commentary
Singer has written columns in the Wall Street Journal. In 2009, he wrote a piece titled, “Free-Marketeers Should Welcome Some Regulation,” in which he argued that, “It's true that monetary policy was too lax for too long, and the government encouraged lending to people who were unlikely to repay their loans. But this crisis was primarily caused by managements and individuals throughout the financial system who exercised extremely poor judgment. The private sector, not the public sector, is where the biggest mistakes were made.”
At a September 2006 financial conference in New York City, Singer delivered a speech called "Complexity Made Simple," advising that the purchase of collateralized debt obligations (CDOs) was a serious mistake, anticipating the downturn of the housing market by nearly a year before the $770 billion taxpayer-funded bailout.
Fellow hedge fund manager Jim Chanos revealed in an August 2009 radio interview that he and Singer had met with G7 finance ministers in 2007 to warn them that the global financial system was increasingly unstable and approaching a catastrophe, with banks on the verge of sinking the global economy. They argued that decisive action was called for, but were met with indifference. Chanos's recounting of this episode sparked an uproar in Britain, where many were angry that Gordon Brown, who had been present at the meeting, had ignored the experts' warning.
Singer is Chairman of the Board of Trustees for the Manhattan Institute for Policy Research. He also serves on the Board of Fellows of Harvard Medical School and the Board of Directors of Commentary Magazine.
- Forbes Billionaires: Paul Singer June 2014
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- "Elliott Management Corporation Company Profile". Yahoo! Finance. Retrieved 2007-07-18.
- "Vulture funds – the key players". the Guardian.
- "Can you make an ethical case for vulture funds?". The Independent.
- Timerman, Hector (November 14, 2012). "Africa and Latin America Still Fight Vulture Funds". The Huffington Post. Retrieved 13 June 2013.
- JTA: "Jewish, Republican, pro-gay rights" By Ron Kampeas May 14, 2011
- Celarier, Michelle (March 26, 2012). "Mitt Romney's hedge fund kingmaker". CNN Money.
- Kambiz Foroohar (February 2008). "The Opportunist". Bloomberg Markets.
- "Paul Singer". Forbes. 2012-04-18. Retrieved 2013-11-03.
- Sheehan, Michael (November 15, 2011). "Vulture funds – the key players". The Guardian (London). Retrieved June 10, 2012.
- Keith, Tamara. "SuperDonor Backs Romney — And Gay Marriage". New Hampshire News. Retrieved 13 June 2013.
- Dugan, Ianthe Jeanne; Brody Mullins (27 August 2012). "Wall Street's Singer Makes His Influence Felt". The Wall Street Journal. Retrieved 12 June 2013.
- Vardi, Nathan (December 17, 2012). "Billionaire Hedge Fund Manager Bets On Mainframe Computers". Forbes. Retrieved 13 June 2013.
- Celarier, Michelle (July 4, 2014). "Hedgie Paul Singer’s ‘vulture investing’ paid off royally". New York Post .
- Guardian (November 15, 2011). "Vulture funds – the key players". London: The Guardian. Retrieved 11 June 2013.
- Whitehouse, Kaja. "Argentina says 'Arrh, no!' to Paul Singer’s $20 million demand for seized ship". New York Post. Retrieved 13 June 2013.
- Foley, Stephen, Paul Singer, the hedge fund holdout, Financial Times, June 20, 2014 (registration required)
- Adams, Patricia, Why Argentina's Rulers and Cronies Are Fair Game, Huffington Post, June 30, 2014
- Lopez, Linette. "Hedge Funder Paul Singer Went Ballistic On Argentina In His Q4 Investor Letter". Retrieved 13 June 2013.
- Raymond, Nate (April 2, 2013). "UPDATE 2-US court demands Argentine bondholders address pay plan". Reuters. Retrieved 13 June 2013.
- "Argentina offers to pay debts with cash & bonds". Associated Press. 30 March 2013.
- UNITED STATES COURT OF APPEALS, FOR THE SECOND CIRCUIT (23 August 2013). "12-105(L) NML Capital, Ltd. v. Republic of Argentina" (PDF). Clarín. Retrieved 23 August 2013.
- Argentina makes debt case in US newspapers AFP wire, June 23, 2014
- , "Harvard Awards the First Singer Prize", May 31, 2007
- , "Dr. Shiela Johnson and Gordon Appointed to VHI Save the Music Foundation Board of Directors", March 19, 2007
- , "New York City Police Foundation Donors List", June 30, 2009
- "Can-Do 2010 Supporters".
- Eric Lichtblau (August 27, 2010). "Financier’s Largess Shows G.O.P.’s Wall St. Support". The New York Times. New York Times.
- "The Paul E. Singer Foundation Donates $25,000 to MarineParents.com, Inc.™". Marine Parents. Retrieved 23 May 2014.
- "Paul E. Singer". The Giving Pledge. Retrieved 15 October 2013.
- "Out on the Street' Summit to Spotlight LGBT Employee Issues | LGBT Employees". Businessnewsdaily.com. 2012-04-25. Retrieved 2013-11-03.
- Bruni, Frank (June 9, 2012). "The G.O.P.’s Gay Trajectory". New York Times. Retrieved 13 June 2013.
- Nicholas Confessore and Michael Barbaro (May 14, 2011). "Donors to GOP are backing gay marriage push". The New York Times.
- "Republican Donor Paul Singer Gives $250,000 to Maryland Marriage Campaign". The Advocate. Retrieved 18 March 2013.
- Bruni, Frank (June 9, 2012). "The G.O.P.’s Gay Trajectory". The New York Times. Retrieved June 10, 2012.
- Palmer, Anna (9 April 2014). "Billionaires push Republicans on gay rights bill". Politico. Retrieved 29 April 2014.
- Fuller, Jaime (4 April 2014). "Meet the wealthy donor who’s trying to get Republicans to support gay marriage". Washington Post. Retrieved 29 April 2014.
- "The Paul E. Singer Foundation to Serve as Title Sponsor for the Bob Woodruff Foundation 4th Annual Stand Up for Heroes". The Paul E. Singer Foundation. Retrieved 30 June 2014.
- New York Times: "Financier’s Largess Shows G.O.P.’s Wall St. Support" By ERIC LICHTBLAU August 27, 2010
- Thomas Jr., Landon (January 25, 2007). "Hedge Fund Chiefs, With Cash, Join Political Fray". New York Times. Retrieved March 18, 2015.
- Clifton, Eli (April 7, 2014). "GOP Pro–Gay Marriage Funder’s Other Agenda: Bombing Iran". The Nation. Retrieved March 18, 2015.
- Blumenthal, Paul (April 23, 2014). "Wall Street, War Hawks Fund Challenger To Only Anti-War, Anti-Wall Street Republican". Huffington Post. Retrieved March 18, 2015.
- "Hedge Fund Chiefs, With Cash, Join Political Fray". The New York Times. New York Times. January 25, 2007.
- "Bush Visit May Boost Olmert". The New York Sun. 2008-05-13. Retrieved 2013-11-03.
- "Romney Attracts More of Bush's Top Donors Than Rivals (Update2)". Bloomberg. July 20, 2007.
- new York Times: "Publicity-Shy Giuliani Backer Is Thrust Into Spotlight" By MICHAEL COOPER and LESLIE WAYNE November 22, 2007
- Andrew Malcolm, "Giuliani fundraiser was mystery initiative backer", Los Angeles Times, November 28, 2007
- Barbaro, Michael (June 25, 2011). "The Road to Gay Marriage in New York". The New York Times.
- "Schedule A Itemized Receipts - Committee: RESTORE OUR FUTURE, INC.". Federal Election Commission. Retrieved 2013-11-03.
- Yang, Jia (11 October 2013). "Here’s who pays the bills for Ted Cruz’s crusade". Washington Post. Retrieved 11 October 2013.
- La Roche, Julia. "Hedge Fund Billionaire Paul Singer Gives Bernanke A 'D' Grade". Business Insider. Retrieved 13 June 2013.
- "Paul Singer - Mitt Romney's hedge fund kingmaker". Fortune (magazine). 26 March 2012. Retrieved 2013-11-07.
- Paul Singer (March 23, 2010). "The Dodd bill and U.S. Competitiveness". Wall Street Journal.
- Singer, Paul (April 3, 2009). "Free-Marketeers Should Welcome Some Regulation". The Wall Street Journal.
- Johnson, Rob; Lynn Parramore (September 1, 2009). "Jim Chanos Warned Brown, Geithner, and Others about Coming Financial Crash in 2007". Huffington Post. Retrieved 13 June 2013.
- , "Manhattan Institute Trustees", 2010
- "Board of Fellows".
- "Members". Committee on Capital Markets Regulation. Retrieved 11 September 2014.