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Carlyle Buys Large Stake in TCW

Hagstrom out at Legg Mason, Janus shuffles managers, and more. 

Morningstar Fund Analysts, 08/10/2012

Carlyle Group and TCW announced that two Carlyle-backed investment funds will be acquiring TCW from Societe Generale in a deal that's expected to place 60% of the firm in Carlyle hands and leave the other 40% of the firm's equity in the hands of employees.

In preparation for the deal, TCW has offered all of its investment teams five-year contracts in exchange for new equity in the firm. Managers responsible for 90% of the firm's assets under management have signed up thus far, which should help mitigate any disruption to fundholders.

Although Carlyle will own the majority of the firm's equity, the deal represents something of a reverse takeover on the part of Metropolitan West Asset Management, which was acquired by TCW in late 2009 at the same time that TCW fired its star manager, Jeffrey Gundlach. That's because Met West veteran David Lippman is joining TCW's board and taking over the CEO role from Marc Stern, who will become TCW's chairman after the deal closes. Meanwhile, legacy Metropolitan West co-founder Laird Landmann will join Lippman on the board. The board's other four seats will go to representatives from Carlyle and may include Oliver Sarkozy, brother of the former French President. 

  - source: Morningstar Analysts

Janus Announces Manager Shakeup, Fund Changes
Janus is making several managerial and strategic changes at its fund lineup.

John Eisinger, who took over Neutral-rated Janus Global Select (formerly Orion) JORNX from Ron Sachs in January 2008, left the firm on Aug. 3, 2012, after posting poor, volatile returns. He's been replaced by George Maris, who has run Neutral-rated Janus Worldwide JAWWX since March 2011. Maris plans to keep Global Select's concentrated, all-cap look, but will take smaller sector bets and limit less-liquid stocks to smaller positions.  It is unclear, though, whether he can get the fund back on track. He is off to a weak start at Worldwide.

Janus Emerging Markets JMFTX added a third manager, Hiroshi Yoh, who has worked as an analyst at the firm for just over a year and is based at Janus' recently established Singapore office. Yoh previously spent 12 years as a manager and analyst at Japanese insurance firm Tokio Marine.

Janus Global Market Neutral JLSTX stopped taking new investments on Aug. 3, 2012, and will liquidate around Oct. 15, 2012, due to a dwindling asset base. Assets in the fund have dropped to $26 million from a peak of $1.2 billion in early 2008. Manager Daniel Riff will stay on as the portfolio is wound down and is expected to leave Janus around Oct. 1, 2012.

Morningstar fund analysts cover more than 1,700 mutual funds and write regular commentary covering fund industry news, fund investing trends, picks, portfolio planning, international investing, and more.

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