Will Clint take the hint?

Sat Apr 1, 2006

Despite continuing to grind out positive returns, both talent and assets departed from Carlson last year

 Clint Carlson

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 defections.

Twelve-year-old multistrategy shop Carlson Capital held $4.7 billion in assets under management at year-end 2004 but suffered heavy redemptions...

ISSN: 2151-1845 / CDC10004H

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