subsidiary ClearBridge Advisors bids goodbye to CEO Peter Sundman
while Goldman Sachs faces another departure as its fixed-income team's global head of portfolio construction and risk management James Clark retires, Morningstar reports
ClearBridge announced Sundman's exit through a December 1 letter to its clients. Morningstar's report attributed part of the reason for his departure is cost. Sundman will not be replaced, instead ClearBridge president Terrence Murphy
will assume the former CEO's responsibilities.
Before signing on with Legg Mason, Sundman had spent two decades at Neuberger Berman, leaving when Lehman Brothers collapsed in 2008. At the time of his departure he served as president of Neuberger Berman Management and ran that firm's mutual fund distribution arm.
Separately, Morningstar also reports that Goldman Funds faces a series of departures from its managers.
Clark's resignation follows Katinka Domotorffy's exit as the chief investment officer and head of quantitative investment strategies. Both Clark and Domotorffy were part of the Goldman Sachs Balanced (GSBFX), a five member managing team.
At the end of the month, fundamental equity group portfolio managers David Shell and James Otness are also scheduled to leave the company. The 11-year veteran Stephen Warren will assume Clark's post.
ClearBridge Advisors' Original Letter
December 1, 2011
As a valued client we are pleased to inform you that effective immediately, Terrence Murphy, President of ClearBridge, will assume leadership responsibility for all aspects of ClearBridge. The duties of the chief executive officer are being merged into those of the president. Peter Sundman has left the firm and we thank him for his service to ClearBridge. We are fully committed to you as a client and this change will not affect the day-to-day management of your account.
In his expanded role, Terrence is now responsible for the investment and institutional sales teams. He is committed to delivering the performance and client service you have come to expect. Terrence will focus his talents on growing the firm by expanding our sales teams and developing products to meet client needs.
Terrence has been part of ClearBridge and its predecessor organizations since 2000. Prior to the formation of ClearBridge in 2005, Terrence was Chief Financial Officer of the Citigroup Asset Management business. As Chief Operating Officer of ClearBridge for the last six years, he engineered the creation of a finely-tuned operational infrastructure to support ClearBridge's portfolio management, research and trading teams. From June 2010 until January 2011, Terrence also maintained a dual-role as Chief Operating Officer of ClearBridge and interim Chief Financial Officer of Legg Mason, Inc.
We appreciate your business and look forward to continuing to provide you with our investment management services. If you need additional information, please contact your Legg Mason account representative, or Vinay Nadkarni of ClearBridge at (212) 805-xxxx.
Harry D. Cohen
Chief Investment Officer
Terrence J. Murphy
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