Marketwatch – North Sound’s total assets will likely fall to $1.4 billion in January, McAuley estimated in the letter. He didn’t say what North Sound’s assets were previously, but Institutional Investor reported in 2005 that the Greenwich, Conn.-based firm’s assets stood at roughly $3 billion.
“We have taken steps to ensure that the reduction in our capital is as smooth a transition as possible for all investors, and we believe we have been successful,” McAuley wrote in the letter, a copy of which was obtained by MarketWatch.
North Sound’s Legacy funds have underperformed recently because they didn’t invest enough money in their best ideas, McAuley added. The firm will focus its research on fewer sectors next year and try to generate fewer, but stronger investment ideas, he explained.
“We intend to increase our participation in our highest conviction names,” he said. “I will continue to be personally responsible for all investment decisions.”
Several investment staff members have left North Sound, along with a similar number of non-research employees, the letter said.
