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Anhalt/O'Connell resigns bond accounts as Lockheed takes back assets; Brundage Story & Rose sells units
Anhalt/O'Connell & Steffanci Inc. has resigned its fixed-income accounts, and Brundage Story Sz Rose LLC has sold its businesses to a unit of Donaldson, Lufkin & Jenrette Inc. and to Bessemer Trust Co. NA.
Paul Anhalt, chief investment officer of the firm that bears his name, said its major client, Lockheed Martin Corp., decided to take back its long bond business and manage it internally.
David Toth, a vice president at Lockheed Martin Investment Management Co., Bethesda, Md., who oversees the pension fund, refused to comment.
Los Angeles-based Anhalt had been managing more than $700 million in Treasury securities for the $20 billion pension fund. Those assets made up 90% of Anhalt's business. After the Lockheed Martin change, Anhalt resigned its other accounts, which included $20 million for Raymond James Financial Inc., St. Petersburg, Fla., and $2 million for the First Baptist Church, Jacksonville, Fla.
"Lockheed hired us in 1979, the year we started the business," Mr. Anhalt recalled. "We were their swing duration fixed-income manager. We used a duration adjustment strategy and shifted from long to short (duration), as...