Charles Axelrod (B): Confonting Decisions

Charles "Chuck" Axelrod, CEO of Spartan Capital Management, a famous hedge fund in the City of London, is forced to dismiss Taylor Dillon, Spartan's director of investments and one of the masterminds behind the fund's recent success. The collegial climate at Spartan was eroding quickly. Taylor's conflict with Damian Akerman, the director of one of Spartan's most important divisions, was reaching unbearable dimensions. Plus, it was no longer possible to quell the rumors Chuck was hearing about Taylor's impudence, lack of respect and threats directed at other Spartan employees. With Taylor in the organization, Chuck thought, the conflict would only be heightened, until the middle-term feasibility of the hedge fund would be put at serious risk. Indeed, compliance and regulatory risks were also accumulating in the business. Therefore, potential lawsuits from disgruntled employees, bad publicity and interminable calls with investors to explain what had happened, and why he had not prevented it, formed a perfectly likely nightmare running through Chuck´s head. To further complicate matters, Taylor's groundbreaking strategies had been the key to the recent capture of several of Spartan's top clients, who had been dazzled by the charisma and daring of its flamboyant young director of investments. How would these clients react when they found out about Taylor's sudden dismissal? Would Chuck be capable of soothing them and convincing them that their money was still in the best hands with Taylor no longer at Spartan? Would there be a general stampede to the door, not only of investors but also of the fund's valuable employees who are magnetized by Taylor's charisma? How could he explain all these changes to Spartan?s owners? In two weeks, Chuck had to defend the results of the quarter to the Board of Directors. This case is based on the case Charles Axelrod from the same authors, DPO-448.