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

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

Rating:M* on the Sorrows of Tom Marsico Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, October 25, 2012

M* on the Sorrows of Tom Marsico

News summary by MFWire's editors

For some morning schadenfreude, try yesterday's Fund Spy column on Tom Marsico's missteps.

Morningstar senior mutual fund analyst Karin Anderson looks at the troubles at Marsico Capital Management over the last five years, from its 2007 buyback through its recent "mixed" results.

Anderson says the firm paid a "whopping" price to go private in 2007, taking on $2.5 billion in debt to "ensure its legacy as a stand-alone asset manager." The problem, of course, is that Tom Marsico took the company private at its high-water mark AUM declined from around $110 billion to $43 billion in the three years following the buyback.

Since then, moreover, several debt restructurings have forced Marsico's employees to give back controlling ownership of the firm. In 2010, creditors took on 49 percent of the company's equity; the debt was restructured again this year, reducing the stake of Marsico and his employees to just under 40 percent, but putting off repayments for ten years.

Anderson also shows how Marsico's funds have been struggling since the buyback. And she details the string of PM departures and lost subadvisory contracts over the last few years.

All together, she says, "it will likely be a slow road to recovery" for Tom Marsico and his shop. 

Edited by: Chris Cumming

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

 Do You Recommend This Story?

Return to Top
 News Archives
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:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use