AUM US$14 billion (2013) Assets under management 14 billion USD (2013) Founded 1964 | Website www.firstmanhattan.com Founder David Gottesman Number of employees 130 | |
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Industry Financial Services, Asset Management Key people David Gottesman (Founder), Robert Gottesman (CEO) Products Investment management, mutual funds, private investment funds Headquarters New York City, New York, United States | ||
First Manhattan Co. (FMC) was founded in 1964 by a group of financial industry executives led by David Gottesman. FMC remains an owner-operated investment advisory firm. Robert Gottesman, David Gottesman’s son, is currently the firm’s CEO.
Contents
FMC is based in New York City.
Background
FMC provides professional investment management services to high-net-worth individuals, as well as to partnerships, trusts, retirement accounts, mutual funds and institutional clients. The firm manages investments on a fully discretionary basis for accounts ranging from under $1 million to over $100 million. The firm currently manages in excess of $14 billion, utilizing a long-term, value-oriented investment approach.
The firm’s clients are significant owners of Berkshire Hathaway stock, and the firm has established a reputation for utilizing investing strategies similar to that espoused by Warren Buffett. The firm’s founder, David Gottesman, was an early investor in Berkshire Hathaway and he has maintained a long-standing friendship with Mr. Buffett. The firm’s investment approach is to establish long term positions in portfolio companies, most often relying on fundamental analysis and targeting value in the public equity and fixed income markets of the United States.
Leadership
David Gottesman founded the firm in 1964. Mr. Gottesman is a member of the Board of Directors of Berkshire Hathaway, Inc. He was a director of the Securities Industry Association.
Robert Gottesman joined First Manhattan Co. in 1987 and is currently the firm’s Chief Executive Officer and Chairman of the Management Committee.
The firm’s Management Committee is responsible for the management and day-to-day operations of the firm. It is currently composed of: Robert Gottesman (CEO), Cheryl Kallem (CFO), Timothy Muccia, Neal Stearns, Jack Varon and Jay Vodofsky.
Recent Developments
In an unusual step for FMC, the firm took an active role in a proxy contest involving the management of a biotech company, VIVUS, Inc., a company in which the firm and its clients hold a significant position. FMC led the initiative to replace the board and its CEO. The contest was settled in July 2013 with the company appointing a new CEO and replacing a majority of the board in an effort to maximize shareholder value.
Other
The firm currently advises two mutual funds, the FMC Select Fund and the FMC Strategic Value Fund.