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Ann_Humphreville's avatar

Ann_Humphreville

San Diego money manager Charles Brandes suffers with sagging newspapers

I believe it’s widely acknowledged that Charles Brandes has, for several years now, ceased having any influence on, or significance for, the U.S. investment industry. The same can be said with respect to Charles in relation to his own firm (if his own court pleadings in his divorce case can be believed). Indeed, one of the major criticisms raised about Charles by leaders in the global consulting and brokerage communities spearheading the mass exodus of Brandes’ clients, is his unwillingness to make necessary changes or adjustments regarding the dozen or so members of his firm’s Investment Committee that is responsible for the firm’s sustained underperformance and often highly questionable investment decisions. I believe that Brandes’ 1, 3, 5, and now 7 year performance numbers are all under their relevant benchmarks. Faced with pressure and demands by consultants, brokers and clients to make changes to the quality and composition of this Investment Committee, Charles & Co has steadfastly refused – resulting apparently in the loss of approximately $60 bn in assets under management over 5 years according to this article. This misplaced loyalty probably costs him about $240 mm in lost fees per year. This is to say nothing of what this faith in the competence of his Investment Committee has cost his clients. No serious businessman ignores the need for accountability and allows such an avoidable collapse to befall himself, his firm and his clients. No serious businessman does this while smilingly vacantly from the society pages. Had Charles shown such loyalty to his second wife Linda, he’d of course be in a better position to keep 100% of the annually dwindling fees afforded him by his investment team. If he’d shown such loyalty to his clients, he may not be facing such steep reversals. One wonders at what level of AUM his third wife Tanya joins his clients in the quest for “greener” pastures. In any event, Charles’ refusal to effectively deal with the problems of his Investment Committee makes him the comic lead in his own personal production of “King Lear” with his Investment Committee playing, of course, both Goneril and Regan and his clients playing the long-suffering Fool. "O nuncle, court holy water in a dry house is better than this rain water out o'door."
— February 27, 2011 2:06 p.m.
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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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