Former Fidelity manager Adam Benjamin sues after leaving for Michael Dell family office

Adam Benjamin walked away from a $48 billion fund at Fidelity Investment Management to join DFO Management, the private investment firm of billionaire Michael Dell. But the exit triggered a high-stakes legal battle over millions in unpaid compensation. Benjamin filed a lawsuit in the Suffolk Division of the Superior Court of Massachusetts on Friday, claiming Fidelity turned on a dime after he refused to stay. Fidelity executives fired him on July 10 and immediately slapped him with a non-compete clause, wiping out a payout worth millions of dollars. Benjamin managed the Fidelity Select Semiconductors Portfolio, which is up 58% so far this year, thrashing the 13.3% return of the S&P 500 index. His fund delivered an average annual return of 37.4% over the last five years, landing it in the top percentile of all comparable funds rated by Morningstar. Benjamin argues that DFO Management is not a competitor, noting he never worked for Fidelity is own family office business. Fidelity declined to comment on the pending litigation. Asset management firms rely heavily on these restrictive covenants to lock down top talent. For fund managers watching from the sidelines, this court fight highlights the immense financial risks tied to jumping ship.