Morningstar Advisor - October/November 2013 - (Page 54)

Undiscovered Manager A Good Fit By Rob Wherry Well-regarded David Corkins kept a low profile after leaving Janus—until he made a play for like-minded Meridian Funds. Aster Investment Management and Arrowpoint Partners were two firms on different trajectories. Heading into 2013, AIM, based outside San Francisco, was still reeling from the sudden death a year earlier of its president, Rick Aster, who was synonymous with the firm he founded in 1977 and the Meridian Funds that AIM had managed since their respective inceptions. Almost $900 million had exited the funds’ coffers since Aster’s passing, and Meridian’s trustees were searching for an 54 Morningstar Advisor October/November 2013 outside investor who could help the firm and the funds survive. “It was clear we were missing Rick’s hand” on Meridian Growth MERDX, says Jim Glavin, a board member. Meanwhile, Arrowpoint, located more than 1,300 miles to the east in Denver, was enjoying a comfortable existence as an up-andcoming money-management firm. Arrowpoint was stocked with blue-chip talent who had left Janus, including co-founder David Corkins, who had skillfully managed $20 billion in accounts and at funds such as Janus Mercury (now Janus Research JRAAX) and Janus Growth & Income JDNAX. Since opening its doors in 2007, the firm’s assets had grown to $2 billion as it posted solid performance in its clients’ accounts during the 2008 downturn. The firms, though, are now more closely linked than their predicaments or the distance on a map suggested. In May, Arrowpoint quietly bought AIM for an undisclosed sum. Mergers in the mutual fund world aren’t uncommon, but this one was notable for

Table of Contents for the Digital Edition of Morningstar Advisor - October/November 2013

Morningstar Advisor - October/November 2013
Letter From the Editor
How to Make Social Media Work for You
Do Mutual Funds Still Have a Role?
More Personal Than Finance
How to Handle Your TIPS Positions
A Real Estate Veteran Starts From Scratch
Investments á la Carte
Investment Briefs
When to Say No
Take a Guarded Approach to Homebuilders
Fund Distribution Has Been Turned on Its Head. Now What?
Winning the Distribution Battle
Active ETFs Wait for Their Heyday
A Fund Firm Defies Indexing Trend
Piloting New Channels
A Good Fit
The Predictive Power of Fair Value Estimates
Does Being Prudent Pay Off?
Utilizing Utilities’ Total Return
Stuck in the Middle Is Not a Bad Place to Be
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Good Guys Win

Morningstar Advisor - October/November 2013