Daniel J. Arbess
Xerion Investments LLC
Areas of Expertise:Biofuels, Clean Energy, Electric Vehicles, Energy Economics, Energy Efficiency, Energy Security, Environment, Fuel Cells, Geothermal, Hydropower, Infrastructure, Innovation, Renewables, Smart Grid, Water, Wind
Additional Areas of Expertise:
Public and private market investments; privatization; mergers & acquisitions
Daniel J. Arbess is an investor and policy analyst recognized for his prescient calls on some of the largest developments of the past 30 years, including the economic transition toward markets from communism in Eastern Europe & China; the U.S. housing/financial crisis and monetary policy-led market recovery; and the accelerating “virtualization” of our physical world, as part of the economic transition from manufacturing/services toward technology-led growth.
Arbess has been professionally involved in global policy analysis, macro themes, structured finance and event-driven investment opportunities since beginning his professional career at White & Case in 1987. As the youngest partner in that law firm's history, and eventually Head of its Global Privatization Group, he advised European and other emerging market governments on economic transition, industrial reorganization and negotiated privatization sales. He became an investment principal in 1995, launching what became the $3 Billion Xerion Hedge Funds with the backing of Paloma Partners in 2003, merging Xerion into Perella Weinberg Partners and becoming a partner of that firm in 2007. Among other of Xerion's notable investments was in the distressed senior secured bank debt of Chrysler, which was the subject of a high profile negotiation with the White House during the early weeks of the Obama Administration, and ultimately an appeal to the U.S. Supreme Court.
The Xerion Funds targeted transformative corporate events (such as financial restructuring and M & A), pivotal business trends, and changes in government policy affecting the macro environment, generating 12-year net returns of +240% (12.5% annualized) from 2003 through November 2014, including +112% (21% annualized) without a single down year through the four years of financial crisis and early recovery (’07-’10). Arbess' cautious technical and fundamental outlook for the economy and public market opportunities led him to return Xerion investor capital in late 2014, after having materially recovered losses from Xerion's one down year (2011), to focus on private investments.
Arbess is a U.S. citizen, born in Montreal, Quebec, received a Bachelor of Laws from Osgoode Hall Law School in Toronto, and a Master of Laws from the Harvard Law School. He is a lifetime member of the Council on Foreign Relations, a member of the Atlantic Council and a frequent writer and media commentator on macro-economics, investing and global markets. He is also a co-Founder of No Labels, a U.S. political organization promoting collaboration across the political spectrum.