The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Wednesday, August 10, 2011|
Will the European Crisis Produce Another Neuberger Berman?
Several U.S. mutual funds have European parents (see chart below). What does the recent market volatility, particularly, mean for those fund firms?
A case in point is Los Angeles-based TCW, which is backed by French bank Societe Generale. SocGen's stock (PINK:SCGLY) has dropped more than 40 percent in the past 16 days, taking hits last week after reporting a profit dip (see Bloomberg) and again today as rumors swirl about a possible downgrading of France's government debt (see Bloomberg, Reuters and Reuters again). Today SocGen executives held a press conference to reassure investors that the bank is solvent.
A spokeswoman for SocGen referred inquiries to TCW, and a spokesman for TCW told MFWire.com that the rumors swirling around SocGen "have no impact on TCW."
Yet even in a worst-case, nightmare, collapse scenario for SocGen, TCW executives should draw comfort from Neuberger Berman's example: when Lehman Brothers collapsed, Neuberger executives seized the opportunity to do a management-led leveraged buyout (LBO), one that looks pretty successful two years later [see MFWire.com, 5/12/2011]. So if disaster strikes, TCW might just find itself independent.
Printed from: MFWire.com/story.asp?s=37546
Copyright 2011, InvestmentWires, Inc.
All Rights Reserved