MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, December 10, 2012 Marsico Out-Houdinis Houdini Marsico Capital Management [profile] is the second largest fund firm in Denver, so it makes sense that the Denver Post would show a little bit of love, and amazement, at Tom Marsico’s hijinks. On the one hand, Marsico recently completed a pair of deals with creditors that shaved $2.7 billion in his company’s debt to only $700 million, while keeping control of his company, as well as giving the shop a decade to pay off the remainder of the debt. The monstrous debt was acquired when Marsico led a buyback of his company from Bank of America in 2007. “Harry Houdini couldn't have pulled off a better escape,” wrote journalist Aldo Svaldi. However, Svaldi notes in the same article that the firm’s AUM has dropped from $110 billion in 2007 to $27.9 billion as of Oct. 31. Moreover, the article quotes analysts as saying that the firm still has its hands full: Seasoned fund managers have departed, its growth-stock focus remains out of favor with investors and performance isn't what it should be. Seven analysts and four fund managers have left the firm in recent months, according to Morningstar analyst Karin Anderson. Returns at four of Marsico's oldest funds have lagged their peers over the past one- and five-year periods, while the two funds with the best track records are under new managers, she added. Printed from: MFWire.com/story.asp?s=42305 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |