Its benchmark-agnostic philosophy courts risk, but there are many portfolio managers and analysts given the firm's small number of equity holdings. The firm's recruitment, development, and retention of talent through its analyst program are sound, and there's a new emphasis on more diversity.
The firm is in its third era of leadership: first came founder Bill Ruane, then Bob Goldfarb and David Poppe, and as of 2016, a four-person team of portfolio managers John Harris, Arman Gokgol-Kline, Chase Sheridan, and Trevor Magyar. These four advanced within the organization and now serve as the firm's management committee: Investors still lead the firm's strategic direction. The committee arose after the former managers' disastrous investment in Valeant Pharmaceuticals, which hurt the firm's reputation and highlighted concentration and key-person risks. So, the committee offloaded day-to-day operational responsibilities from investors to professionals recruited from outside the firm to serve in COO, CFO, and chief technology officer roles.
Ten partners own the firm, including the portfolio managers. This supports an emphasis on prudent growth of the business and aligns their interests with those of end investors.
United States