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Tuesday, September 04, 2012|
Artio Lays Off 25
Artio Global Investors' [profile] management team is trimming both its headcount and its product lineup. In order to cut roughly $20 million in costs, Artio has let go 25-staffers. It has also decided to discontinue its U.S. Equity strategies.
According to the company, the layoffs did not affect PMs or research analysts within its international equity, high yield or high Grade fixed income strategies.
The cuts follow declining results for the firm. During the six month period ending June 30, 2012, Artio earned $76.64 million in total revenue, down 52 percent from the same period last year. Management fees for the six-month period were likewise down 52 percent to $76.09 million, according to a Form 10-Q filed with the U.S. Securities and Exchange Commission.
Net income for those six months in 2012 was $6.15 million, down nearly 86 percent from the same period in 2011.
Company spokesperson Neil Shapiro was looking for executives to comment on the story.
Artio Global is the asset management arm of the Swiss banking group Julius Baer Holding AG. Richard Pell has been the firm's chief executive since 2007 and chief investment officer since 1995. Pell also serves as co-portfolio manager of the International Equity Strategy and co-portfolio manager of the Total Return Bond Strategy. Tony Williams has served as Artio's president since 2011 and its chief operating officer since 2007. Frank Harte has been chief financial officer at the firm since 2002.
In a prospectus supplement filed with the SEC, Artio closed off to new investors four U.S. equity funds, the Artio US Multicap Fund, the Artio US Midcap Fund, the Artio US Smallcap Fund and the Artio US Microcap Fund.
The firm sold 25 million shares in an IPO held in September 2009, for $26 each-- raising $650 million. The share price has dropped 88 percent to $3.10 in mid-morning trading.
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