Osterweis retains the familial airs of an old-fashioned boutique, but its bespoke approach comes at a premium, and its slow-moving nature means changes come slowly. The firm maintains an Average Parent rating.
Osterweis has no aspirations to be the quickest in following the latest trends. Instead, the firm prefers to tend to its existing clients with meticulous attentiveness. That is not to say firm leaders don't care to evolve, but that evolution has come with hiccups, and above-average fees remain a hurdle to cross if they wish to appeal to a wider investor base. Although the firm's 2016 hire of industry veteran Jim Callinan to run its small-cap growth-equity initiative has added close to USD 500 million in assets under management with strong performance, its acquisition of Zeo Capital in early 2022 didn't pan out, and the sustainably themed bond funds it brought were liquidated after only 20 months in-house as they failed to perform and gain traction. At the same time, the firm liquidated another small fund, Osterweis Total Return. With these moves, Osterweis plans to focus on fewer core competencies, even if that means a less diverse lineup.
Still, despite this recent flip-flop, the firm has other positives overall. Carl Kaufman and Catherine Halberstadt, co-CEOs who oversee the firm's investment and operational sides, respectively, ensure that their teams have the proper capabilities to conduct their daily activities. The firm has grown organically through thoughtful hires and a deliberate equity distribution practice that has helped to build an enviable staff retention record. Firm ownership has broadened significantly as founder John Osterweis winds down his stake; today about half of firm employees are equity owners, and a third has been with the firm for longer than two decades.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Osterweis (Branding Name ID: BN000009N1), is covered by Morningstar Manager Research.
United States