Dreman Value Management cuts 20% of staff

David Dreman, an iconoclastic value fund manager, has eliminated a significant portion of his staff at his investment management firm as it looks to reduce costs, an executive confirmed today. Dreman Value Management LLC has let go 10 employees — roughly 20% of the Jersey City, N.J.-based firm’s total head count — confirmed James Hutchinson, president, managing director and portfolio manager at DVM. “It was a painful decision for us,” he said, adding that this represents the first time that DVM has been forced to reduce its work force. "But we're almost in a depression-like economic environment, and we had to face reality," Mr. Hutchinson said. He declined to identify any of the employees who have left the firm, but noted that most of the jobs were back-office and support positions. Mr. Hutchinson added that no portfolio managers were affected. DVM, which manages roughly $6 billion, has seen its assets under management decline by roughly 70% since 2007, when it ran approximately $22 billion. Last month, the firm was terminated by New York-based DWS Investments, where it was running the DWS Dreman High Return Equity Fund, the flagship fund that Mr. Dreman has managed for the last 20 years. An internal team of portfolio managers will replace DVM in early June, DWS noted in a filing.