Plus, new Putnam funds, Fidelity manager changes, and more.
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With the jarring nosedive the stock market has taken amid the financial crisis and the failure of the initial government bailout plan, it's no surprise that nearly all large-value funds have lost money recently, given their typically large stakes in the financials sector. Below we look at some funds that have tanked since Lehman Brothers collapsed on September 15, as well as a few that have survived fairly well.
We've long been fans of managers who invest with conviction, but Arnie Schneider's decision to stash nearly 40% of Schneider Value
Only one large-value fund has stayed in the black this year: Forester Value
Other funds escaped the turmoil with minimal damage, relatively speaking. Yacktman
Neuberger Berman Finds a New Owner
Two private-equity companies, Bain Capital Partners, LLC and Hellman & Friedman LLC, have agreed to purchase Neuberger Berman, the mutual fund business of bankrupt Lehman Brothers Holdings. The deal also includes the fixed-income and alternative asset-management arms of Lehman Brothers' Investment Management Division. The acquisition, expected to be completed in 2009, will lead to a stand-alone investment firm with an estimated $230 billion of assets under management (the combined value of Neuberger Berman and the Lehman division). Portfolio managers and other senior professionals will own at least 20% of the new conglomeration, and Bain Capital and Hellman & Friedman will split the remaining stake evenly.
This is not the first time Hellman & Friedman has bought out a financial firm. In 2006, it purchased European asset management firm Gartmore Investment Management in a similar fashion, with employees retaining partial ownership of the firm. It also has a stake in Artisan Partners, LPL Financial, and Arch Capital Group Ltd, among others, and generally takes a hands-off approach with these acquired firms. Bain Capital, meanwhile, has generally stayed away from acquiring financial firms until now, preferring to invest in consumer companies.
The new company will be headed by George Walker, who had been head of investment management for Lehman. Joe Amato will continue to be in charge of the Neuberger arm. Overall, we're pleased that investment personnel will have some ownership stake in the firm. Meanwhile, we expect little disruption, if any, for Neuberger Berman fundholders.