MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, August 10, 2000 Two Munders are Better than One Lee Munder may hope that he hasn't made too much of a name for himself. The founder of Munder Capital Management announced today that he has launched a new firm -- Lee Munder Capital Group. Unfortunately for Munder, investors are likely to think of his former employer which has roughly $60 billion in assets under management, and not the new firm with they think Munder. "People out there who know the Munder name probably connect it with my prior firm, Munder Capital Management," admits Mr. Munder who founded the older firm in 1985. "Our new organization, Lee Munder Capital Group, is not associated in any way with the former firm or with The Munder Funds. We've built an entirely new organization from the ground up, bringing in a cohesive and tremendously talented group of investment professionals." Birmingham, Michigan-based Munder Capital Management has recently risen to prominence among retail fund holders with its Munder Net Net Internet fund. Mr. Munder says that two firm's have "worked out an amicable way to be in business without harming each other's business." "We wish him well," said a spokesperson for Munder Capital who declined to comment on any agreements between the two firms. "We think that we have operated very well without Lee. We have seen a lot of growth and are happily ticking along." Employee-owned Lee Munder Capital Group has offices in Boston and Palm Beach, and specializes in venture capital, hedging strategies, separate account management and mutual funds, says Mr. Munder. It is primarily targeting institutions and high net worth individuals, but also plans to service smaller accounts with mutual funds offered through intermediaries such as brokers, financial planners and registered investment advisers, says Mr. Munder. "Two things make us unique," he says. "First, while we are a new firm, we have already completely staffed all major activities with seasoned professionals having in aggregate over 150 years of experience, including portfolio management, investment analysis, finance, compliance, legal and operations. Second, our investment management resources have been built in proportion to the sector weightings of today's financial marketplace. Not only does this group have strong, broad-based experience across all sectors of the market, but also we possess exceptional strength and depth in some of the fastest-growing sectors - particularly technology and telecommunications." His portfolio management team includes a coterie of experienced fund managers, including former Standish, Ayer & Wood's professionals including: Nicholas S. Battelle, Andrew L. Beja, Jonathan F. Stone, Kenneth J. Winston and Sarah L. Griffin. He has also snagged some Munder Capital alumni including, Richard R. Mullaney (who was also at Loomis, Sayles & Company), Adam L. Munder, and Ryan J. Munder. He says that the firm's investment style concentrates on finding high-growth opportunities by focusing on stocks of the most competitive companies within their respective industries and that most of its investments fall in technology, telecommunications, healthcare and business services stocks. Citing SEC restrictions, Mr. Munder declined to talk about specific plans for his fund business. When asked how he would distribute funds or whether the firm planned an Internet fund offering all he would say is people will have to "wait and see on how that unfolds". He did add that the firm is planning "both private and public offerings" that will "appeal to a wide variety" of investors. Don't be surprised if he copies some of what appeals about Munder's Net Net Fund. Lee Munder's investment team are focused on small-cap tech stocks and as he notes, they have the "bandwidth" to make investments. He will also likely leverage technology in his own offices. Look for online distribution of portfolio information and Web-based statements, capital gains and losses reports, and account activity to be posted online. Terry Gardner, another Munder Capital alumnus, is the chief financial officer of Lee Munder and Robert Deziel will act as managing director in the venture capital business. Gardner left Munder Capital on May 5. A spokesperson for Munder Capital said that Peter Hoglund, chief administrative officer and Stephen Shenkenberg, general counsel are taking over Gardner's duties. Mr Munder added that he will continue to hire people in both the firm's offices. "We are looking for additional people in trading, large cap portfolio management, and client service," he elaborated. "We want to make sure we stay ahead of the curve." The firm currently employs sixteen. Conspicuously missing are marketing staff. Mr. Munder says that he has decided to go with no direct marketing today. "We have found that word of mouth about the organization we have put in has kept, and will keep us, busy for the near future," he explained "That is one of the positions that we will fill a little later." He also declined to elaborate on which kind of business -- institutional, high net worth, or retail -- he would focus on. "That's like asking me to choose from amongst my children," he said, "I've had success in the past in all of those areas." In the meantime, he says that he is "enjoying rekindling old relationships". Printed from: MFWire.com/story.asp?s=25851 Copyright 2000, InvestmentWires, Inc. All Rights Reserved |