Plus, a loss for Oberweis, new offerings at Schwab, and more.
Legg Mason announced yesterday that Brian Posner, chief executive and co-CIO of its ClearBridge Advisors asset-management unit, will leave the firm at the end of the month after two years in the role. Peter Bain, a senior vice president at Legg Mason, will step in as interim chairman, and Hersh Cohen stays on as sole CIO. Legg Mason established ClearBridge Advisors when it bought Citigroup's Smith Barney asset-management business in early 2006, and the funds run by ClearBridge wear the Legg Mason Partners moniker.
During his tenure at ClearBridge, Posner attempted to unite the former Smith Barney managers under a single cooperative investment culture. It's too early to say whether Posner's initiative has been successful, although he did make strides in streamlining the Legg Mason Partners' fund lineup, which previously was repetitive and bulky.
On the fund level, Posner's exit directly impacts Legg Mason Partners Capital
Oberweis Loses Election, Assets
Political victory was short-lived for ex-growth fund manager, Jim Oberweis. After winning the Republican primary for the U.S. Congressional seat held by former House Speaker Dennis Hastert (R-Ill.), Oberweis lost the election this week to Democratic underdog Bill Foster. Oberweis had previously made multiple runs for office, and this latest defeat marks his fourth high-profile loss in six years. Foster, by comparison, is new to the political arena, and his victory is particularly noteworthy, given the 14th district's history as a GOP stronghold. During the contentious campaign, Foster pilloried Oberweis Asset Management, which is now run by Oberweis' son James W. Oberweis, in ads that criticized the firm's investment in Chinese firms.
Oberweis Asset Management has had its own share of problems lately, as recent market volatility has made many investors skittish. In January alone, the firm's assets under management dropped almost 40%, to $817 million.
Housing Crisis Spurs Change at DWS
It's the end of an era for a trio of DWS funds subadvised by Baltimore-based Alex. Brown Investment Management. The fund board approved a proposal by Deutsche Asset Management, advisor to the DWS Scudder funds, to end a long-standing relationship with Alex. Brown. Alex. Brown had run DWS Equity Partners
This change is just the latest step in Deutsche's ongoing effort to whip its equity funds, which are the result of a series of acquisitions that took place earlier in the decade, into shape. Equity Partners will be comanaged by Thomas Schuessler and David Hone. At the start of 2007, the Frankfurt, Germany-based Schuessler replaced longtime manager Tom Sassi on DWS Large Cap Value
Deutsche's subadvisory relationship with renowned investor David Dreman's firm appears safe for the time being. Deutsche plans to merge its small-cap laggard, DWS Small Cap Value