Federated Investors co-founder and chairman John Donahue no longer has direct holdings in the Pittsburgh-based mutual fund firm, Barron's reports.

Donahue sold 208,797 Federated shares during the period of June 30 through July 5 for close to $5 million. A Federated spokeswoman told the pub that the move "was for personal wealth diversification."

Post-sale, Donahue now "indirectly holds 569,880 shares of the investment company through the John F. Donahue and Rhodora J. Donahue Joint Revocable Trust, an amount that represents less than 1% of the company's outstanding shares," reports Barron's reporter Grace Williams.

In StreetInsider.com president Jon Juricic's eyes, Donahue's move is not cause for alarm.

"His past sales haven't been indicative of the stock. He has sold all of his direct holdings and you never want to see anyone of C-level selling out all their stock. That said, he's the founder of the company. He's an older gentleman who built this company to what it is today. Are you going to fault the guy?" 

Edited by: Armie Margaret Lee


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