Despite continuing to grind out positive returns, both
talent and assets departed from Carlson last year
Having suffered a heavy loss of talent, mediocre returns and
massive redemptions, Carlson Capital is now picking up the
pieces. The firm brought in the big guns of McKinsey & Co.
to revamp the management structure and make compensation more
egalitarian, but some investors wonder if what they perceive to
be a major problem remains unchanged: the strategy.
Carlson's travails look like a story of personnel issues run
amok, for there is no better explanation for the firm's recent
struggles. "How do you lose so many investors when you've
never, in a full year, lost money?" asks one competing manager.
The answer is that smart money does not take kindly to multiple
Twelve-year-old multistrategy shop Carlson Capital held $4.7
billion in assets under management at year-end 2004 but
suffered heavy redemptions...