Massachusetts pension board fires five managers

The Massachusetts pension board fired five managers, including Legg Mason Capital Management.
AUG 07, 2008
The Massachusetts Pension Reserves Investment Management Board fired five managers , including Legg Mason Capital Management, a subsidiary of Legg Mason Inc. of Baltimore, for inconsistent performances and high-tracking errors. Others fired were Gardner Lewis Asset Management Inc of Chadds Ford, Pa.; NWQ Investment Management Co. LLC of Los Angeles; Mazama Capital Management Inc. of Portland, Ore.; and Ariel Investments LLC of Milwaukee. The PRIM fund began the calendar year with $53.7 billion. But, as of June 30, it had $50.6 billion in assets under management. The board ousted the five managers following a report from staff and Cliffwater LLC, a consultant based in Marina del Rey, Calif., which noted that for the past five years the actively-managed portfolio managers have not exceeded their respective benchmarks. As of May 31, PRIM had returns of -4.27% year to date, -9.17% for one-year trailing, 7.31% for three-year, 10.36% for five-year and 5.30% for 10-year. These returns compared to the benchmark of -3.07% for the year to date, -6.35% for one-year, 8.31% for three-year, 10.88% for five-year, and 4.82% for 10-year. The terminated managers had total assets of $2 billion as of June 30.The assets of these managers will be transferred to the Russell 3000 Index portfolio managed by State Street Global Advisors of Boston and also be used to fund the 1% allocation to a new portable alpha fund of hedge fund managers. The remaining active managers are INTECH of Palm Beach Gardens, Fla.; Pimco Funds of Newport Beach, Calif.; Axa Rosenberg Investment Management LLC of Orinda, Calif.; Earnest Partners LLC of Atlanta; Putnam Investments of Boston and Numeric Investors LP of Boston.

Latest News

AssetMark's Talk Tracks AI gives advisors a script for client calls
AssetMark's Talk Tracks AI gives advisors a script for client calls

The new AI feature generates instant client portfolio talking points, slashing meeting prep time for advisors.

Behind the Great Wealth Transfer: Citizens bets on business owners
Behind the Great Wealth Transfer: Citizens bets on business owners

As Citizens expands its advisory footprint, the bank is also going after wealth trapped inside business ownership

Forbes and Shook pull the plug on rankings, events, in 2026
Forbes and Shook pull the plug on rankings, events, in 2026

The Forbes rankings are highly sought after by some advisors and firms for marketing purposes.

Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition
Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition

Meanwhile, an advisor tuck-in from Edward Jones expands Kestra's Washington, D.C.-area presence, and Janney deepens its Connecticut footprint with an experienced Wells Fargo advisor.

Kovack Financial Network launches private succession platform for advisors
Kovack Financial Network launches private succession platform for advisors

KFN Succession Center pairs advisors weighing retirement with buyers, as next-gen affordability keeps eroding industry-wide.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income