Donald Sussman
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Selwyn Donald Sussman (born June 8, 1946) is an American billionaire
hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...
manager who is the founder and chief investment officer of the Paloma Funds. Sussman has served on the boards of a number of organizations and is a major contributor to Democratic candidates and causes.


Early life and education

Sussman was born to a Jewish family in June 1946, the son of Beatrice (née Zimmerman) and William Sussman.New York Times: "S.D. Sussman Weds Miss Tisch"
March 15, 1981
His father was a real estate developer. He was raised in
Miami, Florida Miami is a East Coast of the United States, coastal city in the U.S. state of Florida and the county seat of Miami-Dade County, Florida, Miami-Dade County in South Florida. It is the core of the Miami metropolitan area, which, with a populat ...
and attended high school at Windsor Mountain School, a boarding school in
Lenox, Massachusetts Lenox is a town in Berkshire County, Massachusetts, United States. The town is in Western Massachusetts and part of the Pittsfield, Massachusetts, Pittsfield Metropolitan Statistical Area. The population was 5,095 at the 2020 United States census ...
. He then attended Columbia College before continuing on to
New York University New York University (NYU) is a private university, private research university in New York City, New York, United States. Chartered in 1831 by the New York State Legislature, NYU was founded in 1832 by Albert Gallatin as a Nondenominational ...
, from which he earned B.S. and
M.B.A. A Master of Business Administration (MBA) is a professional degree focused on business administration. The core courses in an MBA program cover various areas of business administration; elective courses may allow further study in a particular a ...
degrees.


Career

Sussman's career in finance began in 1958, when, at the age of 12, he made a sixfold return on a $300 investment in the stock of
Michigan Sugar Michigan Sugar Company is an agricultural cooperative, based in Bay City, Michigan, that specializes in the processing of beet sugar. Founded in 1906, Michigan Sugar sells beet sugar under the brand names ''Big Chief'' and ''Pioneer.'' Michigan ...
, by correctly predicting that the
Cuban Revolution The Cuban Revolution () was the military and political movement that overthrew the dictatorship of Fulgencio Batista, who had ruled Cuba from 1952 to 1959. The revolution began after the 1952 Cuban coup d'état, in which Batista overthrew ...
would disrupt sugar supplies and drive up the price of sugar commodities. After school, he served as vice president and chief financial officer of the Titan Industrial Corporation, a
privately held A privately held company (or simply a private company) is a company whose Stock, shares and related rights or obligations are not offered for public subscription or publicly negotiated in their respective listed markets. Instead, the Private equi ...
trading firm, and then managed money for the partners of a New York law firm, Gelberg & Abrams. In 1981, Sussman founded Paloma Partners, a
Greenwich, Connecticut Greenwich ( ) is a New England town, town in southwestern Fairfield County, Connecticut, United States. As of the 2020 United States census, 2020 census, it had a population of 63,518. It is the largest town on Gold Coast (Connecticut), Connectic ...
-based
hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...
with mostly institutional clients. A number of affiliated funds were established for both for U.S. investors (Paloma Partners Institutional Investors, Capital Preservation Partners, and European Merger Fund) and non-U.S. investors (Paloma International Fund, Capital Preservation Partners Limited, and European Merger Fund Limited for non-U.S. persons). As a
money manager Investment management (sometimes referred to more generally as financial asset management) is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified inve ...
, Sussman sought to keep fund strategies and management targeted rather than sprawling. Paloma's culture was risk-averse, and Sussman sought to insulate the funds from
market volatility In finance, volatility (usually denoted by " σ") is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market pric ...
. Sussman pioneered the approach of minimizing risk by "dividing assets among independent investment professionals and demanding absolute transparency of their holdings." Paloma achieved a profit in 15 out of its first 18 years. Among Paloma's traders was Nicholas Maounis, who later formed
Amaranth Advisors Amaranth Advisors LLC was an American multi-strategy hedge fund founded by Nicholas M. Maounis and headquartered in Greenwich, Connecticut. At its peak, the firm had $9.2 billion in assets under management before collapsing in September 2006, aft ...
, to which Sussman provided seed money. Paloma's middle and back-office operations were acquired by
JPMorgan JPMorgan Chase & Co. (stylized as JPMorganChase) is an American multinational finance corporation headquartered in New York City and incorporated in Delaware. It is the largest bank in the United States, and the world's largest bank by mar ...
Worldwide Securities Services in February 2006 for an undisclosed sum.Donald Sussman Donates $1 Million Towards the Cost of Completing the Pen Bay Hospice Center
''Jewish Business News'' (December 2, 2013).
Following the sale to JPMorgan, Sussman has acted as a serial investor and backer of new hedge funds such as
Nassim Nicholas Taleb Nassim Nicholas Taleb (; alternatively ''Nessim ''or'' Nissim''; born 12 September 1960) is a Lebanese-American essayist, mathematical statistician, former option trader, risk analyst, and aphorist. His work concerns problems of randomness, ...
's
Empirica Capital Empirica Capital LLC was a hedge fund founded in 1999 by Nassim Nicholas Taleb in partnership with Mark Spitznagel, that used Taleb's black swan strategy. The firm closed in 2005. The investment strategy of the fund has been explained in a ''New ...
and David Shaw's D.E. Shaw & Co. In 2009, Paloma Partners backed
LMR Partners LMR Partners (LMR) is a British multi-strategy investment firm. It has a focus on global macro and event-driven investment strategies and makes use of both systematic and discretionary trading strategies. The firm is headquartered in London wi ...
. In 2013, Paloma Partners agreed to back Rhodium Capital Advisors, LLC. Rhodium Capital, based in London, is a long-short European credit fund founded by Ifftikhar Ali and Jeffrey Tirman. In addition to the Paloma funds, Sussman is the founder of Trust Asset Management and New China Capital Management LLC. In 2012, Sussman invested approximately $3.3 million in
MaineToday Media MaineToday Media, Inc. (abbreviated as MTM) was a privately owned news publisher of daily and weekly newspapers in the U.S. state of Maine, based in the state's largest city, Portland. It included the ''Portland Press Herald'', the state's la ...
through Maine Values LLC to provide the Maine newspaper company with much-needed working capital. MaineToday Media is the owner of the ''
Kennebec Journal The ''Kennebec Journal'' (''KJ'') is a six-day morning daily newspaper A newspaper is a Periodical literature, periodical publication containing written News, information about current events and is often typed in black ink with a white or g ...
'', the ''
Morning Sentinel The ''Morning Sentinel'' is an American daily newspaper published six mornings a week in Waterville, Maine. Printed at the ''Portland Press Herald'' press in South Portland, Maine, it covers cities and towns in parts of Franklin, Kennebec, Peno ...
'', the ''Coastal Journal'', the ''
Portland Press Herald The ''Portland Press Herald'' (abbreviated as ''PPH''; Sunday edition ''Maine Sunday Telegram'') is a daily newspaper based in South Portland, Maine, with a statewide readership. The ''Press Herald'' mainly serves southern Maine and is focused ...
'' and several digital media properties. The investment, originally made as a loan, was restructured as a purchase of equity and resulted in Maine Values owning 75% of MaineToday Media. In 2015, Sussman sold MaineToday to
Reade Brower Reade Francis Brower is a media owner known for owning a majority of the newspapers in Maine during his tenure as owner of MaineToday Media. His network of owned papers was described by ''The Maine Monitor'' as a "near-monopoly". Personal li ...
, a Maine printer and newspaper owner.


Financial donations

In 1997, Sussman donated $1 million to Blue Hill Memorial Hospital to construct an outpatient building. The building was later named “Sussman Medical Office Center". In 2010, after the
2010 Haiti earthquake The 2010 Haiti earthquake was a catastrophic Moment magnitude scale, magnitude 7.0 Mw earthquake that struck Haiti at 16:53 local time (21:53 UTC) on Tuesday, 12 January 2010. The epicenter was near the town of Léogâne, Ouest (departm ...
, Sussman donated the use of his private jet to transport medical supplies to Port-au-Prince, Haiti. Also in 2010, the same aircraft was used to transport a dying man back to Maine. In 2010, Sussman donated funds to the Penobscot East Resource Center (PERC), an organization promoting sustainable fisheries in Maine, to build the group a new facility in
Stonington, Maine Stonington is a town in Hancock County, Maine, Hancock County, Maine, United States. It is located on the southern portion of the Deer Isle (island), island of Deer Isle. The population was 1,056 at the 2020 United States census, 2020 census. It ...
. Sussman gave $12 million to
Skidmore College Skidmore College is a Private school, private liberal arts colleges in the United States, liberal arts college in Saratoga Springs, New York. Approximately 2,700 students are enrolled at Skidmore pursuing a Bachelor of Arts or Bachelor of Scien ...
, a private liberal arts college in
Saratoga Springs, New York Saratoga Springs is a Administrative divisions of New York#City, city in Saratoga County, New York, United States. The population was 28,491 at the United States Census 2020, 2020 census. The name reflects the presence of mineral springs in the ...
, as part of a larger $200 million effort to build co-ed student housing; the newly redeveloped student housing (renamed "Sussman Village") opened in 2013. In 2012, Sussman's friends and colleagues established the S. Donald Sussman Award at the
MIT Sloan School of Management The MIT Sloan School of Management (branded as MIT Sloan) is the business school of the Massachusetts Institute of Technology, a private university in Cambridge, Massachusetts. MIT Sloan offers bachelor's, master's, and doctoral degree progra ...
in honor of his lifelong contribution to quantitative finance. This award is presented to individuals or groups who exhibit innovation and excellence in quantitative investment strategies and models. In 2013, Sussman donated $1 million to Pen Bay Healthcare to help complete its new Hospice House, construction of which had already begun on the northern edge of the 64-acre Pen Bay Medical Center campus in Rockport. The Hospice House was named in honor of Sussman's grandmother, Ida Sussman. Construction was completed in July 2014. Sussman has been a benefactor of the
Weizmann Institute The Weizmann Institute of Science ( ''Machon Weizmann LeMada'') is a Public university, public research university in Rehovot, Israel, established in 1934, fourteen years before the State of Israel was founded. Unlike other List of Israeli uni ...
, an Israeli research center; he funded the Weizmann Institute's Sussman Family Building for Environmental Services (built in 1996). In 2010, Sussman contributed $1 million to the
University of the Virgin Islands The University of the Virgin Islands (or UVI) is a public historically black land-grant university in the United States Virgin Islands. History UVI was founded as the College of the Virgin Islands on March 16, 1962. In 1986, it officially becam ...
, for a new science center. In May 2021 Donald Sussman donated an additional $6 million towards the establishment of the medical school.


Political contributions

A liberal Democrat, Sussman is a longtime donor to Democratic candidates. Sussman helped raise funds in support of the political candidacies of
Bill Bill(s) may refer to: Common meanings * Banknote, paper cash (especially in the United States) * Bill (law), a proposed law put before a legislature * Invoice, commercial document issued by a seller to a buyer * Bill, a bird or animal's beak Pl ...
and
Hillary Clinton Hillary Diane Rodham Clinton ( Rodham; born October 26, 1947) is an American politician, lawyer and diplomat. She was the 67th United States secretary of state in the administration of Barack Obama from 2009 to 2013, a U.S. senator represent ...
beginning in the 1990s. Sussman also raised funds for the
Al Gore 2000 presidential campaign The 2000 presidential campaign of Al Gore, the List of vice presidents of the United States, 45th vice president of the United States under President Bill Clinton, began when he announced his candidacy for President of the United States, the p ...
and Connecticut U.S. Senators
Chris Dodd Christopher John Dodd (born May 27, 1944) is an American lobbyist, lawyer, and Democratic Party (United States), Democratic Party politician who served as a United States senator from Connecticut from 1981 to 2011. Dodd is the List of United Sta ...
and
Joe Lieberman Joseph Isadore Lieberman (; February 24, 1942 – March 27, 2024) was an American politician and lawyer who served as a United States senator from Connecticut from 1989 to 2013. Originally a member of the Democratic Party (United States), Dem ...
. In 2016, Sussman donated $40 million to Democratic
super PAC Independent expenditure-only political action committees, better known as super PACs, are a type of political action committee (PAC) in the United States. Unlike traditional PACs, super PACs are legally allowed to fundraise unlimited amounts of m ...
s and aligned groups, including $21 million to the
Priorities USA Action Priorities USA Action is the largest Democratic Party super PAC. Founded in 2011, it supported Barack Obama's 2012 re-election campaign. It was the primary super PAC supporting Hillary Clinton's 2016 presidential campaign and Joe Biden's 2020 ...
super PAC supporting the presidential candidacy of Democratic nominee Hillary Clinton. The contributions made Sussman and his Paloma Partners the single largest supporter of Democrats and Clinton in the 2016 election cycle; in the
2018 midterm elections Elections were held in the United States on November 6, 2018. These midterm elections occurred during incumbent Republican president Donald Trump's first term. Although the Republican Party increased its majority in the Senate, Democratic incum ...
, Sussman was the fifth-most generous individual donor, contributing $27 million to Democrats and Democratic-aligned groups. He was previously a major contributor to the
Maine Democratic Party The Maine Democratic Party is the affiliate of the Democratic Party in the U.S. state of Maine. After the Civil War, Democrats were a minor player in a political scene dominated by the Republican Party. However, during the 1950s, Edmund Muskie ...
and to its arms raising money for
state House State House or statehouse may refer to: Buildings *Aso Villa or State House, the official residence of the President of Nigeria *Government House, Dominica or The State House, the official residence of the President of Dominica * State House, Bar ...
and
state Senate In the United States, the state legislature is the legislative branch in each of the 50 U.S. states. A legislature generally performs state duties for a state in the same way that the United States Congress performs national duties at ...
campaigns. In a 2011 interview, Sussman said that he regarded his political donations as a part of his broader philanthropy.


Board memberships

Sussman has served as a member of the
board of trustees A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
of
Carnegie Hall Carnegie Hall ( ) is a concert venue in Midtown Manhattan, New York City. It is at 881 Seventh Avenue (Manhattan), Seventh Avenue, occupying the east side of Seventh Avenue between 56th Street (Manhattan), 56th and 57th Street (Manhattan), 57t ...
,
Skidmore College Skidmore College is a Private school, private liberal arts colleges in the United States, liberal arts college in Saratoga Springs, New York. Approximately 2,700 students are enrolled at Skidmore pursuing a Bachelor of Arts or Bachelor of Scien ...
(until 2012), the
University of the Virgin Islands The University of the Virgin Islands (or UVI) is a public historically black land-grant university in the United States Virgin Islands. History UVI was founded as the College of the Virgin Islands on March 16, 1962. In 1986, it officially becam ...
, and the
Portland Museum of Art The Portland Museum of Art, or PMA, is the largest and oldest public art institution in Maine. Founded as the Portland Society of Art in 1882. It is located in the downtown area known as The Arts District in Portland, Maine. History The PMA use ...
. He serves as co-chair of Carnegie Hall's Investment Committee, and chair of Skidmore College's investment committee. He has also served as a board member for the
Center for American Progress The Center for American Progress (CAP) is a public policy think tank, research and advocacy organization which presents a Modern liberalism in the United States, liberal viewpoint on Economic policy, economic and social issues. CAP is headquarter ...
, the
Democracy Alliance The Democracy Alliance is a network of progressive megadonors who coordinate their political donations to groups that the Alliance has endorsed. Since its founding in 2005, the Democracy Alliance has given more than $1 billion to liberal organiz ...
, and the Foundation for Maine's Community Colleges. Sussman has served as a member of the MIT Sloan School's Finance Group Advisory Board; deputy chairman of the board of governors of the
Weizmann Institute The Weizmann Institute of Science ( ''Machon Weizmann LeMada'') is a Public university, public research university in Rehovot, Israel, established in 1934, fourteen years before the State of Israel was founded. Unlike other List of Israeli uni ...
; and honorary trustee of the
Ethical Culture Fieldston School The Ethical Culture Fieldston School (ECFS), also known more simply as Fieldston or Ethical Culture, is a private pre-K through twelfth grade coeducational school in New York City with two campuses, in Manhattan and in the Bronx. The school is ...
.


Personal life

In 1981, Sussman married Laurie M. Tisch, daughter of billionaire philanthropist Joan Tisch and
Preston Robert Tisch Preston Robert Tisch (April 29, 1926 – November 15, 2005) was an American businessman who was the chairman and—along with his brother Laurence Tisch—was part owner of the Loews Corporation. From 1991 until his death, Tisch owned ...
, the 68th
United States Postmaster General The United States postmaster general (PMG) is the chief executive officer of the United States Postal Service (USPS). The PMG is responsible for managing and directing the day-to-day operations of the agency. The PMG is selected and appointed by ...
and former co-owner of the
New York Giants The New York Giants are a professional American football team based in the New York metropolitan area. The Giants compete in the National Football League (NFL) as a member of the National Football Conference (NFC) NFC East, East division. The ...
. They have two children and divorced in 1992. In 1994, Sussman purchased a home in
Deer Isle, Maine Deer Isle is a town in Hancock County, Maine, United States. The population was 2,194 at the 2020 census. Notable landmarks in Deer Isle are the Haystack Mountain School of Crafts, Stonington Opera House, and the town's many art galleries. ...
. In 2008, Sussman purchased Turner Farm, a historic farm located on the island of
North Haven, Maine North Haven is a New England town, town and island in Knox County, Maine, Knox County, Maine, United States, in Penobscot Bay. The town is both a year-round island community and a prominent summer colony. The population was 417 at the 2020 United ...
, 12 miles off shore in
Penobscot Bay Penobscot Bay () is an inlet of the Gulf of Maine and Atlantic Ocean in south central Maine, a stretch known as Midcoast Maine, in a broader Atlantic region known as Down East. The bay originates from the mouth of Maine's Penobscot River, ...
. The history of Turner Farm dates back to the 1780s and under Sussman's ownership, the property has been returned to a working farm producing organic products. In addition to Turner Farm, Sussman also formerly owned an organic farm, David's Folly Farm, in
Brooksville, Maine Brooksville is a town on Penobscot Bay in Hancock County, Maine, United States. As of the 2020 census, the town population was 935. It contains the villages of North Brooksville, South Brooksville (on Buck's Harbor), West Brooksville, Brooksvil ...
; he sold the farm to his former tenants in 2013. In 2011, Sussman was remarried to
Chellie Pingree Chellie Marie Pingree ( ; born Rochelle Marie Johnson; April 2, 1955) is an American politician serving as the U.S. representative for since 2009. Her district includes most of the southern part of the state, centered around the Portland area ...
, a Democratic U.S. representative from Maine, in a private ceremony on Turner Farm. In 2015, Pingree announced an "amicable and truly mutual decision" to end their marriage; the divorce was finalized in the summer of 2016. In 2019, Sussman designed the first Eagle Class 53, a rigid-wing, sail-powered and hydro-foiled
catamaran A catamaran () (informally, a "cat") is a watercraft with two parallel hull (watercraft), hulls of equal size. The wide distance between a catamaran's hulls imparts stability through resistance to rolling and overturning; no ballast is requi ...
; he worked with Fast Forward Composites to build the cruiser. He was inspired to create this new cruiser while watching the
America's Cup The America's Cup is a sailing competition and the oldest international competition still operating in any sport. America's Cup match races are held between two sailing yachts: one from the yacht club that currently holds the trophy (known ...
. In December 2019, the Eagle Class 53 was recognized as the Best Multihull Boat of the Year 2020 by ''Sailing World''.


Awards

He has received honorary degrees from the
Weizmann Institute of Science The Weizmann Institute of Science ( ''Machon Weizmann LeMada'') is a Public university, public research university in Rehovot, Israel, established in 1934, fourteen years before the State of Israel was founded. Unlike other List of Israeli uni ...
in
Rehovot Rehovot (, / ) is a city in the Central District (Israel), Central District of Israel, about south of Tel Aviv. In it had a population of . Etymology Israel Belkind, founder of the Bilu (movement), Bilu movement, proposed the name "Rehovot ...
, and the
Maine College of Art Maine College of Art & Design (MECA&D) is a Private college, private art school in Portland, Maine. Founded in 1882, Maine College of Art & Design is the oldest arts educational institution in Maine. Roughly 32% of MECA&D students are from Maine. ...
. He has also received the following: * 2004 Alternative Investment News – Lifetime Achievement Award * 2010 Spurwink Humanitarian of the year * 2011 Colby College - The Maine Philanthropy Award * 2013 Institutional Investor's Alpha Hedge Fund Hall of Fame


References

{{DEFAULTSORT:Sussman, Donald 1946 births American hedge fund managers Jewish American people in Maine politics American philanthropists American political fundraisers Businesspeople from Fort Lauderdale, Florida Businesspeople from Miami Columbia College (New York) alumni Living people New York University Stern School of Business alumni People from Deer Isle, Maine People from North Haven, Maine Spouses of Maine politicians Tisch family Chief investment officers Maine Democrats Jews from Maine Jews from Florida