WEST PALM BEACH, FL (HEDGECO.NET) – Rob Donahue the manager of Salomon Brothers Capital fund, a US $1.6 billion mutual fund is stepping down as the manager of that fund, according to publishedreports. Donahue is the second manager to step down from managing that portfolio. Ross Margolies previously managed the fund, and then Donahue assumed full management of the portfolio.
Margolies left to focus on hedge funds, according to a spokesman for the Citigroup Asset Management, Edward Gilttenan. Now Donahue is quitting that portfolio to begin managing his own hedge fund as well, effective July 15, 2004.
The Salomon Brothers Capital fund will now be taken over by Kevin Caliendo as the lead manager, according to the report; Citigroup Asset Management Company is managing the fund.
This is a continuation of the trend in which traditional mutual fund managers have continuously moved over to the arena of hedge fund management. Mark Anson of the California Public Employees Retirement System once explained this syndrome. Anson said the reason for such change is �Money. The investment management industry is in the business of gathering assets; like any other business, the industry looks to increase its revenue base and its income. Hedge funds allow traditional-long only managers to collect more assets and earn higher fees. Any industry will naturally attempt to exploit those venues that offer them highest growth opportunities.�
Recently, Stephen Galbraith, a well-respected Morgan Stanley strategist based in New York, joined Maverick Capital Management LLC. While William de Winton and Colum McCoole, both research analysts with Morgan Stanley in London began hedge fund management careers at Lansdowne Partners, and Plutus Capital Management respectfully.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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