Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Why Federated is Bringing in the Bears Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, July 15, 2008

Why Federated is Bringing in the Bears

Reported by Armie Margaret Lee

Shortly after Federated Investors unveiled its deal with Prudent Bear Funds adviser David Tice & Associates, Joe Machi, vice president and director of alliances at Pittsburgh-based Federated, spoke to The MFWire about why the company pulled the trigger on the deal.

Joe Machi
Federated Investors
Vice President and Director of Alliances
"We saw an opportunity to complement and strengthen our existing alternative strategies team and product lineup," Machi said, praising Dallas-based Tice & Associates' "capabilities, success and investment expertise."

Federated did not tap a financial advisor for this deal, Machi said. Reed Smith served as Federated's external legal counsel.

With the Prudent Bear purchase, Federated executives further cement their reputation as some of the most prolific dealmakers in the fund industry. The latest deal marks the company's 12th transaction in the last five years, many of which are what Machi calls "rollups," in which assets of third-party funds move into existing Federated funds. In other transactions, as in the Prudent Bear deal and the Rochdale transaction (see The MFWire, April 24, 2007), Federated acquires assets plus "manufacturing talent."

The Prudent Bear acquisition, for which Federated is paying an initial $43 million plus future continent payments of up to $99.5 million, covers the $1.2 billion Prudent Bear Fund and the $507 million Prudent Global Income Fund.

"We've been actively working with them on this for the last, eight or nine months," Machi said.

For the Prudent Bear Funds, the deal would open up distribution channels they had not had access to before.

"Today, they're distributed across a few distribution channels," Machi noted.

The Bear Funds, he said, "should be an integral part of most folks' portfolios," he said. "We're going to give it the distribution it needs to get there."

Is Federated on the lookout for more deals?

"We are always busy looking at deals," Machi said. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use