Content area
Full Text
The departure of David Iben, chief investment officer at Tradewinds Global Investors, is just the latest wrinkle in the comeback plans for its parent, Nuveen Investments.
While Nuveen executives have pointed to improving fundamentals -- net inflows of $13 billion in 2011 for a 7% organic growth rate -- the departure of its affiliate's star investment manager isn't good news as the parent struggles for an exit strategy from more than $4 billion in debt after an LBO in late 2007.
Mr. Iben's decision to leave Los Angeles-based Tradewinds, which specializes in value-oriented global equities, came to light on March 14 when officials of Nuveen Investments in Chicago disclosed he was joining hedge fund Vinik Asset Management on June 30.
(Several days later, it was disclosed that three other Tradewinds portfolio managers -- Isabel Satra, Alberto Jimenez Crespo and Gregory Padilla -- also were joining Mr. Iben at Vinik. Ms. Satra had been a portfolio manager with Mr. Iben on a multicap opportunities separate account strategy; Messrs. Crespo and Padilla had co-managed the Tradewinds Global Natural Resources Fund with Mr. Iben.)
The news of Mr. Iben's departure caused immediate action by institutional investors. Tradewinds lost 12% to 13% of its $38 billion in assets under management in the days following the announcement, Glenn Richter, Nuveen's chief operating officer, said during a March 22 conference call. Mr. Richter said the withdrawals were largely from institutional clients that had a key-man clause in their contracts with Tradewinds that required terminating the manager because of Mr. Iben's exit.
Among the pension funds acting on Mr. Iben's departure was the $1.8 billion San Jose (Calif.) Federated City Employees Retirement System. The fund's investment committee on March 28 approved a...