Karsch reshuffles staff after analyst departures

By Katrina Dean Allen

Thu Sep 23, 2010


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The firm has restructured responsibilities in response.


Karsch Capital Management has parted ways with three analysts while an additional two staffers resigned, according to a letter sent to investors Tuesday. Michael Karsch wrote that he has "decided to part ways" with analysts Chris Morgan, Rick Singh and Chris Smith. Additionally, Ravee Mehta, a managing director and analyst, and Peter Ort, who headed the business strategy, have both tendered their resignations. The firm declined to comment.

Due to the departures, responsibilities have been re-jiggered. Seven of the managing director-level analysts will report directly to Karsch, with two junior analysts supporting him in terms of executing new ides and feedback between analysts. The breakdown of sectors among the analysts is as follows: Sourav Choudhary and Michael McGinnis will be responsible for covering financials; Sunny Mehra will cover consumers; Brett Hirsh will be responsible for the industrial and life science equipment sectors; and Jeremy Klaperman, Eric Potoker and Kartik Joshi will cover commodity-oriented equities, healthcare and media/internet stocks, respectively. Godfrey Gill will take over the day to day business operations, in addition to his role in investor relations.

The staff departures come at a time when many equity strategies are struggling to generate positive performance. The firm's flagship onshore fund, Karsch Capital II, is down 3.1% through mid-September. That fund returned 3.6% in 2009 and was down 1.1% in 2008. Since inception in October of 2000, Karsch Capital II has produced an annualized net return of 8.1%.

Assets at the firm have also fallen slightly since the beginning of the year due to outflows and losses in the flagship fund. As of July 1, the firm was managing approximately $3.1 billion. In addition to its equity strategy the firm also manages a separate credit fund, KCM Global Credit Opportunities, launched earlier this year and managed by Jame Donath.

-Katrina Dean Allen

ISSN: 2151-1845 / CDC10004H