Leuthold Manager Dies
Plus, DWS talks break down and more.
Leuthold Weeden Capital Management, the advisor for the Leuthold funds, announced 25-year company veteran Andrew Engel recently died. Engel sat on the firm's asset-allocation committee, worked on the firm's major trend index, and helped run Leuthold Core Investment (LCORX) and Leuthold Asset Allocation (LAALX). Both of those funds had solid records during Engel's tenure. Indeed, Leuthold Core Investment's 7.5% annualized return the last decade was tops among aggressive allocation funds. Engel's death comes just nine months after Steve Leuthold, the firm's founder, stepped back from his comanager roles at the funds. Both of Engel's funds, though, have firm veterans as comanagers who remain in place.
Deutsche, Guggenheim Deal Collapses
After months of protracted negotiations, Deutsche Bank (DB) and Guggenheim Partners failed to reach a deal for Deutsche's asset-management business. The Deutsche asset-management arm holds $535 billion in retail and institutional assets, including the U.S. mutual fund arm, DWS Americas. The price tag was reportedly around $1.8 billion, but according to a report from Reuters the deal broke down over a guarantee Deutsche would have to cover revenue shortfalls for five years. The two parties didn't completely go their own ways: Deutsche announced on May 11, 2012, that it was in discussions with Guggenheim for RREEF, a global alternative asset-management business that was part of the original deal. A price tag wasn't disclosed.
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