‘They Got It Wrong’: Manager Pushes Back on Watch List Status Linked to Political Run

By Justin Mitchell – July 19, 2023

The lead partner at $21 billion fixed income manager Garcia Hamilton & Associates is at odds with investment consultant NEPC for putting his firm on watch because of his political campaign. 

While the consulting firm was not obligated to meet with Garcia Hamilton & Associates before placing it on watch, it might have been a good idea, said Christopher Cutler, president of Manager Analysis Services, a search consultant and due-diligence provider. 

“Best practice would absolutely be to reach out to [Garcia Hamilton] and talk about all the potential concerns and the reasons they might need to change [the firm’s status] to a hold,” he said. 

However, NEPC’s action is just a hold, not a recommendation that clients sell their holdings, Cutler added.

“I don’t think that’s a terrible route to take,” he said. “Probably, they could have communicated that better to Garcia [and] earlier in the process, so he wasn’t surprised.”