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 |
|
Wednesday, August 10, 2011 Will the European Crisis Produce Another Neuberger Berman? Several U.S. mutual funds have European parents (see chart below). What does the recent market volatility, particularly, mean for those fund firms? A case in point is Los Angeles-based TCW, which is backed by French bank Societe Generale. SocGen's stock (PINK:SCGLY) has dropped more than 40 percent in the past 16 days, taking hits last week after reporting a profit dip (see Bloomberg) and again today as rumors swirl about a possible downgrading of France's government debt (see Bloomberg, Reuters and Reuters again). Today SocGen executives held a press conference to reassure investors that the bank is solvent. A spokeswoman for SocGen referred inquiries to TCW, and a spokesman for TCW told MFWire.com that the rumors swirling around SocGen "have no impact on TCW." Yet even in a worst-case, nightmare, collapse scenario for SocGen, TCW executives should draw comfort from Neuberger Berman's example: when Lehman Brothers collapsed, Neuberger executives seized the opportunity to do a management-led leveraged buyout (LBO), one that looks pretty successful two years later [see MFWire.com, 5/12/2011]. So if disaster strikes, TCW might just find itself independent.
Printed from: MFWire.com/story.asp?s=37546 Copyright 2011, InvestmentWires, Inc. All Rights Reserved | ||||||||||||||||||||||||||||||||||||||||||||