Departing chief draws kudos for righting Putnam’s ship
Putnam Investment's reputation, tarnished as a result of once-poor mutual fund performance and past scandals, has been stabilized thanks to the efforts of its departing chairman, according to industry observers.
Putnam Investment’s reputation, tarnished as a result of once-poor mutual fund performance and past scandals, has been stabilized thanks to the efforts of its departing chairman, according to industry observers.
Charles E. “Ed” Haldeman Jr. stepped down Tuesday from his positions as chairman of Putnam Investment Management LLC of Boston, president of the Putnam Funds and member of the board of trustees of Putnam Funds.
Robert L. Reynolds, president and chief executive of Putnam Investments and a trustee of the Putnam Funds, will replace Mr. Haldeman as president of Putnam Funds. The position of chairman of Putnam Investment Management will not be replaced.
“I think Haldeman did a wonderful job triaging the patient,” said Brian O’Rourke, principal at O’Rourke & Co. Inc., a Boston-based financial planning firm with $150 million under management.
Mr. O’Rourke used to recommend Putnam’s fund to clients but stopped because in the late 1990s because of poor mutual fund performance.
He still wouldn’t recommend them, but they have improved, he said.
“They are on the radar,” added Mr. O’Rourke.
Mr. Haldeman began as Putnam’s senior managing director and co-head of investments in 2002. It was part of an effort to bring respectability to a firm that saw its mutual fund performance plummet when the technology sector crashed in 2000.
Prior to joining Putnam, he was widely credited with pulling off a turnaround at Delaware Investments of Philadelphia.
But before he could really begin the work of turning around Putnam, however, the firm was ensnared in the market-timing and late-trading scandals that broke in 2003.
“Haldeman found himself in a situation that was unprecedented,” said Howard Schneider, president of Practical Perspectives, an industry consulting firm in Boxford, Mass.
But despite the difficulties, “he was able to keep the organization intact,” Mr. Schneider said.
Mr. Haldeman’s departure had been in the works ever since Mr. Reynolds, a former top executive with Fidelity Investments of Boston, was brought in to replace Mr. Haldeman as president and chief executive of Putnam last year following Putnam’s acquisition by Montreal-based Power Corporation of Canada from Marsh & McLennan Cos. Inc. of New York.
He is now considered the leading candidate to take over as chief executive of mortgage giant Freddie Mac of McLean, Va., according to a report in The Wall Street Journal that appeared yesterday.
Mr. Haldeman could not be reached for comment.
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