Kathleen Gaffney, the long-time co-manager of the Loomis Sayles Bond Fund with Daniel Fuss has left the firm to join rival Eaton Vance Management.
News of Ms. Gaffney's departure was first reported Monday morning by InvestmentNews. In confirming the new hire, Eaton Vance noted that Ms. Gaffney's new title will be vice president and co-director of Investment Grade Fixed Income. In that role, she will serve alongside Thomas H. Luster, as co-leader of the investment grade fixed income team and will report to Payson F. Swaffield, the company's chief income investment officer.Co. to go to work for rival Eaton Vance Corp.
Ms. Gaffney apparently told Mr. Fuss she was leaving last Thursday, according to a report in The Boston Globe.
"It sounds like a good deal," he reportedly said. "I am very sorry to lose her."
Ms. Gaffney joined Mr. Fuss on the management team of the $22 billion fund in 1997 and was widely seen as the legendary bond manager's eventual successor. Under the pair's guidance, the Loomis Sayles Bond Fund had an annualized return of 8%, more than 200 basis points better than that of the Barclays Aggregate Bond Index.
Ms. Gaffney was a named portfolio manager on numerous other mutual funds, including the $1 billion Loomis Sayles Fixed Income Fund Ticker:(LSFIX). All told, she was managing more than $73 billion in fixed-income assets for Loomis Sayles.
Mr. Fuss won't be left alone on the fund, however. Matthew Eagan and Elaine Stokes were added as managers in 2007.
Erin Heard, spokeswoman for Loomis Sayles & Co. LP, wasn't available for comment.